Who has the right to defend any claim against Bambu related to the operation of the Bambu franchise?

According to Bambu's 2025 Franchise Disclosure Document, Bambu retains the right to defend any claim brought against it that arises from the operation of a Bambu franchise. Moreover, the franchisee is obligated to indemnify Bambu against such claims. This means that if a claim is made against Bambu due to the franchisee's operations, the franchisee must cover the costs of defending against the claim, including legal fees and any resulting damages. This indemnification extends to claims arising from the actions or failures of the franchisee's employees and agents.

This obligation for the franchisee to defend and indemnify Bambu continues even after the franchise agreement expires or is terminated. This highlights a long-term responsibility for the franchisee, even after the business relationship with Bambu has ended. The franchisee's responsibility includes covering all obligations, damages, and costs related to defending any claim against Bambu and its related parties. These costs can include accounting, legal, and expert witness fees, as well as investigation costs, court costs, and travel expenses.

This requirement is a significant consideration for potential Bambu franchisees. It means they could be held financially responsible for a wide range of claims related to their franchise's operations, even those stemming from employee actions. Franchisees should ensure they have adequate insurance coverage and risk management practices in place to mitigate this potential liability. It is also important to understand the full scope of the indemnification obligations and to seek legal counsel to clarify any uncertainties before signing the franchise agreement.