What is the required action regarding insurance claims by the indemnified party for Bhc?

According to Bhc's 2025 Franchise Disclosure Document, if an indemnified party seeks protection under the indemnification agreement, they must submit all claims to their insurers in a timely manner. This means that if a franchisee or other indemnified party experiences a loss covered by insurance, they are obligated to file an insurance claim promptly.

Furthermore, any payments made to the indemnified party will be net of benefits received from insurance related to those claims. In practical terms, this means that if the indemnified party receives insurance payments covering a portion of the loss, the indemnifying party (likely Bhc in many scenarios) will only be responsible for the remaining uncovered amount. This clause ensures that insurance coverage is utilized first to mitigate losses before the indemnifying party bears the financial burden.

This requirement is fairly standard in franchise agreements, as it prevents double recovery for the same loss. By requiring the indemnified party to pursue insurance claims first, Bhc aims to minimize its own financial exposure under the indemnification provisions. Franchisees should understand this process to ensure they fulfill their obligations and receive appropriate compensation for covered losses.