Under the Bang Cookies franchise agreement, what happens to obligations that are intended to survive the termination of the agreement?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
All obligations under this Agreement that expressly, or by their nature, survive, or are intended to survive, the expiration, termination, or Transfer of this Agreement shall continue in full force and effect subsequent to, and notwithstanding, this Agreement's termination, expiration, or Transfer until such obligations are satisfied in full or, by the nature and/or terms, such obligation(s) expire.
Source: Item 23 — RECEIPTS (FDD pages 56–245)
What This Means (2024 FDD)
According to Bang Cookies's 2024 Franchise Disclosure Document, any obligations within the Franchise Agreement that are explicitly designed to survive the termination, expiration, or transfer of the agreement will remain in full effect. These obligations will persist until they are either completely fulfilled or expire according to their specific terms.
This means that certain responsibilities and duties outlined in the agreement do not simply vanish when the franchise relationship ends. Instead, they continue to bind the franchisee, ensuring ongoing compliance with specific requirements even after the franchise is no longer active. This could include, but is not limited to, clauses related to confidentiality, non-competition, or financial responsibilities.
For a prospective Bang Cookies franchisee, this highlights the importance of carefully reviewing the entire Franchise Agreement to understand which obligations are designed to survive termination. It is crucial to assess the potential long-term impact of these clauses and how they might affect future business activities or financial liabilities even after the franchise term concludes. Understanding these continuing obligations is essential for making an informed decision about investing in a Bang Cookies franchise.