Which obligations of Batteries Plus Bulbs and the franchisee survive the expiration or termination of the franchise agreement?
Batteries_Plus_Bulbs Franchise · 2025 FDDAnswer from 2025 FDD Document
All obligations of Franchisor and Multiple Unit Franchisee under this Agreement which expressly or by their nature survive the expiration or termination of this Agreement will continue in full force and effect after the expiration or termination of this Agreement and until they are satisfied in full or by their nature expire.
Source: Item 22 — Contracts (FDD page 80)
What This Means (2025 FDD)
According to Batteries Plus Bulbs's 2025 Franchise Disclosure Document, all obligations of both the franchisor and the franchisee that are explicitly stated or naturally intended to survive the termination or expiration of the agreement will remain in effect. These obligations will persist until they are either fully satisfied or naturally expire.
Specifically, if the Franchise Agreement expires or is terminated due to any reason other than a breach by Batteries Plus Bulbs, the franchisee has several post-term duties. Within ten days of termination, the franchisee must pay all outstanding amounts to Batteries Plus Bulbs and its affiliates, including royalty and service fees, digital marketing and local media program contributions, NMF fees, and accrued interest. The franchisee must also discontinue using and return all operations manuals, advertising materials, and other printed materials related to the franchise operation.
Additionally, the franchisee must assign or disconnect the store's telephone number to Batteries Plus Bulbs, remove all signs and materials identifying the store as a Batteries Plus Bulbs location, and comply with post-termination obligations under the Software Access Agreement and the ProSource RMS Software Agreement, including returning all proprietary software materials. The franchisee must also cancel any assumed name registrations related to the use of licensed marks and cease using confidential information, returning or destroying all related documents. If the termination is due to the franchisee's breach, they must also pay all future lost royalty and service fees and NMF fees within ten days. Finally, the franchisee must comply with all other applicable provisions of the agreement, including non-compete provisions.
The franchisee (and each Principal Owner) also agrees to a non-compete covenant for a period of two years after the agreement expires or is terminated or the date on which Franchisee ceases to conduct the business franchised under this Agreement, whichever is later.