What does the Bambu franchise agreement require the franchisee to do to protect Bambu from claims arising from the operation of the Bambū shoppe?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
by Franchisee (except any taxes Bambu is required by law to collect from Franchisee with respect to purchases from Bambu).
- 20.3 Indemnification. Franchisee shall indemnify, defend and hold harmless Bambu, its subsidiaries, parents and affiliates, and their respective shareholders, directors, officers, managers, members, employees, agents, successors and assignees (the "Indemnified Parties"), against, and to reimburse them for all claims, obligations and damages described in this Section 20.3, any and all third party obligations described in Section 20.2 and any and all claims and liabilities directly or indirectly arising out of the operation of the Bambū shoppe or arising out of the use of the Marks and Bambū system in any manner not in accordance with this Agreement, including without limitation any claims alleging violations of any laws including labor and employment laws. For purposes of this indemnification, claims shall mean and include all obligations, actual and consequential damages and costs reasonably incurred in the defense of any claim against the Indemnified Parties, including, without limitation, reasonable accountants', attorneys' and expert witness fees, costs of investigation and proof of facts, court costs, other litigation expenses and travel, lodging, and meal expenses. This indemnification includes any claims arising from the acts or omissions of Franchisee's
employees and agents. Bambu shall have the right to defend any such claim against it.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to the 2025 Bambu Franchise Disclosure Document, franchisees have specific obligations to protect Bambu from claims and liabilities related to the operation of their Bambū shoppe. The franchisee is required to indemnify, defend, and hold harmless Bambu and its related parties against any claims, obligations, and damages that arise from the operation of the Bambū shoppe. This includes covering all third-party obligations and any claims or liabilities resulting from the use of the Bambu system or marks in a manner not compliant with the franchise agreement, including violations of labor and employment laws.
This indemnification extends to all actual and consequential damages and costs incurred in defending against any claim, including reasonable accounting, attorney, and expert witness fees, investigation costs, court costs, and other litigation expenses. It also covers claims arising from the actions or omissions of the franchisee's employees and agents. Bambu retains the right to defend any claim made against it.
In practical terms, this means that if a customer or employee sues Bambu due to something that happened at the franchisee's location, the franchisee is responsible for covering Bambu's legal costs and any damages awarded. This is a significant responsibility for franchisees, as it could involve substantial financial risk depending on the nature and severity of the claim. Franchisees should ensure they have adequate insurance coverage and operate their business in full compliance with all applicable laws and the Bambu franchise agreement to minimize the risk of such claims.