Does the agreement to attempt internal dispute resolution for Baya Bar survive the termination or expiration of the Franchise Agreement?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
- 20.1 Internal Dispute Resolution. Franchisee shall first bring any claim, controversy or dispute arising out of or relating to this Agreement, the Attachments hereto or the relationship created by this Agreement to Franchisor's president and/or chief executive officer for resolution. After providing notice as set forth in Section 21.7 below. Franchisee must exhaust this internal dispute resolution procedure before Franchisee may bring Franchisee's dispute before a third party. This agreement to first attempt resolution of disputes internally shall survive termination or expiration of this Agreement.
Source: Item 22 — CONTRACTS (FDD page 56)
What This Means (2024 FDD)
According to Baya Bar's 2024 Franchise Disclosure Document, the agreement to first attempt internal resolution of disputes survives the termination or expiration of the Franchise Agreement. Specifically, before a Baya Bar franchisee can bring a dispute before a third party, they must first bring the claim to Baya Bar's president and/or chief executive officer for resolution.
This requirement to attempt internal dispute resolution means that even after the franchise agreement ends, either through termination or expiration, the franchisee is still obligated to try to resolve any outstanding issues directly with Baya Bar's leadership before pursuing other avenues such as mediation, arbitration, or litigation. This can potentially save both parties time and money by attempting to find an amicable solution before involving external parties.
For a prospective Baya Bar franchisee, this survival clause highlights the importance of maintaining a professional and communicative relationship with the franchisor. Even after the franchise relationship concludes, the franchisee may still need to engage with Baya Bar's management to resolve any lingering disputes. This clause encourages franchisees to prioritize open communication and collaboration with the franchisor throughout the duration of the franchise agreement and beyond.