Under what circumstances is a Bor Restoration franchisee required to provide indemnification?

According to Bor Restoration's 2024 Franchise Disclosure Document, a franchisee agrees to indemnify the franchisor under specific conditions related to background checks. As part of the franchisee application and ongoing performance, Bor Restoration conducts credit and criminal background checks. The franchisee consents to these checks, which may occur at the time of application and during the term of the franchise agreement.

The franchisee agrees to release and indemnify Bor Restoration, including its officers, directors, employees, and agents, from any liability, expenses (including court costs and attorney's fees), and claims for damages resulting from the background investigation. This indemnification covers any issues arising from the investigation related to the franchisee's application and their performance as a franchisee.

This means that if Bor Restoration incurs costs or liabilities due to issues connected to the franchisee's background check, the franchisee is responsible for covering those costs. This could include legal fees if a claim arises from the background check process or any damages awarded. The obligation to indemnify Bor Restoration continues throughout the term of the franchise agreement, reflecting the ongoing nature of the background checks.