Under what circumstances must a Bambu franchisee provide indemnification?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
-----------------------------------------------------| | Type of Fee 1 | Amount | Due Date | Remarks | | Other at Shoppe Location Trainings and Certifications 1, 2 | Our then current published rates which are currently $900 per day plus travel related expenses | As incurred | Payable only if you request or we require additional training specific to you. | | Costs and Attorneys' Fees 2 | Will vary depending on nature of your default or the claim brought | As incurred | Payable if we are successful in a legal action. | | Indemnification Under Franchise Agreement 2 | Will vary depending on nature of the claim against us | As incurred | You have to reimburse us if we are held liable for claims resulting from your Bambū shoppe operations.
Source: Item 6 — OTHER FEES (FDD pages 14–18)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, franchisees must provide indemnification to Bambu under specific circumstances. The FDD outlines that franchisees are responsible for reimbursing Bambu if the company is held liable for claims that arise from the franchisee's Bambu shoppe operations. This means that if a customer or another party brings a claim against Bambu due to something that happened at the franchisee's location, the franchisee will have to cover Bambu's costs.
The exact amount of indemnification will vary depending on the nature of the claim against Bambu. The payment is due as incurred, meaning the franchisee will need to reimburse Bambu as the costs arise during the legal process or settlement of the claim. This could potentially include legal fees, settlement costs, and any other expenses Bambu incurs as a result of the claim.
This requirement is a standard practice in franchising, designed to protect the franchisor from liabilities caused by the actions of individual franchisees. Prospective Bambu franchisees should carefully consider this obligation and ensure they have adequate insurance coverage to protect themselves against potential claims. It would be prudent to discuss specific scenarios and potential liabilities with a legal advisor before signing the Franchise Agreement.