If Bft or its designee operates the Studio, do the franchisee's indemnification obligations under Section 11.2 still apply?

According to Bft's 2025 Franchise Disclosure Document, the franchisee's indemnification obligations under Section 11.2 will continue to apply even during any period that Bft or its designee operates the Studio. This means that even if Bft takes over the operations of the studio, the franchisee remains responsible for covering certain losses, damages, claims, and liabilities.

Section 11.2, titled "Indemnification," outlines that the franchisee must indemnify, defend, and hold harmless Bft, its owners, affiliates, successors, assigns, and their respective directors, officers, owners, managers, employees, servants, and agents (collectively, the "Indemnitees") from any losses, damages, claims, demands, liabilities, and causes of action. This includes all costs and expenses, such as reasonable attorneys' fees and court costs. These obligations arise from or are related to the franchisee's breach of the agreement, the operation of the studio, gross negligence, intentional misconduct, or violations of applicable laws.

This indemnification continues even after the franchise agreement expires or terminates. Bft does not need to seek recovery from any insurer or mitigate its losses before making a claim against the franchisee. This places a significant responsibility on the franchisee, even when Bft is managing the studio, highlighting the importance of adhering to the franchise agreement and maintaining proper operational practices to minimize potential liabilities.