Does the Bambu franchisee have to indemnify Bambu against claims arising from the operation of the Bambu shoppe?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
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
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, the franchisee is required to indemnify Bambu against claims arising from the operation of their Bambu shoppe. Specifically, the franchisee must defend and hold harmless Bambu, its subsidiaries, parents, affiliates, and their respective stakeholders from any claims or liabilities that directly or indirectly arise from the shoppe's operation. This includes claims related to violations of laws, including labor and employment laws.
The indemnification extends to all obligations, actual and consequential damages, and costs incurred in defending against any claim. These costs include reasonable accountants', attorneys', and expert witness fees, costs of investigation, court costs, litigation expenses, and travel-related expenses. Moreover, this indemnification covers claims arising from the actions or omissions of the franchisee's employees and agents.
This means that if a customer or employee sues Bambu due to something that happened at the franchisee's location, the franchisee will be responsible for covering Bambu's legal defense costs and any resulting damages. This is a significant obligation for the franchisee, as these costs could be substantial and could potentially impact the franchisee's financial stability. Franchisees should ensure they have adequate insurance coverage and risk management practices in place to mitigate potential liabilities.