Under what circumstances does the indemnification obligation apply to a Brain Balance franchisee, as detailed in Item 6?

According to Brain Balance's 2025 Franchise Disclosure Document, Item 9 refers to Section 19 of the Application License Agreement and Item 6 of the disclosure document regarding the franchisee's indemnification obligations. Indemnification generally means that a franchisee is responsible for covering losses, damages, or liabilities that Brain Balance might incur due to the franchisee's actions or inactions.

While Item 9 indicates that indemnification is a franchisee obligation, the specific circumstances triggering this obligation are detailed in Section 19 of the Application License Agreement, as well as Item 6 of the FDD. A prospective franchisee needs to carefully review these sections to understand when they would be required to indemnify Brain Balance. This could include situations like lawsuits, breaches of contract, or failure to comply with applicable laws and regulations.

Understanding the scope of indemnification is crucial because it can have significant financial implications for a Brain Balance franchisee. Franchisees should consult with a legal professional to fully understand their responsibilities and potential liabilities under the franchise agreement. It is also important to note that all sections are the same in the Standard Franchise Agreement and the Satellite Franchise Agreement.