Does the Bambu Successor Franchise Rider require the Franchisee to indemnify Bambu from Released Claims?

According to Bambu's 2025 Franchise Disclosure Document, the Successor Franchise Rider does require the franchisee to indemnify Bambu from Released Claims. Specifically, the franchisee must agree to defend, indemnify, and hold harmless Bambu and its affiliates from any and all Released Claims arising out of the assertion of any Released Claims, positions, defenses, or arguments contrary to Section 7(b) of the Rider. This obligation is part of a broader agreement where the franchisee releases Bambu from various potential liabilities. This requirement is applicable in specific states like Montana.

This indemnification clause means that if a franchisee, after signing the release, brings a claim against Bambu that falls under the definition of Released Claims, the franchisee will be responsible for covering Bambu's legal costs and any damages awarded. This includes obligations, actual and consequential damages, and costs reasonably incurred in defending against any claim, such as accountants', attorneys', and expert witness fees, investigation costs, court costs, and other litigation expenses.

For a prospective Bambu franchisee, this underscores the importance of fully understanding the scope of the general release and the potential implications of indemnifying Bambu. It is crucial to carefully consider all possible claims before signing the Successor Franchise Rider, as any future legal action could result in the franchisee bearing significant financial responsibility. Franchisees should seek legal counsel to fully understand their obligations and rights under the agreement, especially concerning the release of claims and indemnification provisions.