Does the Baya Bar agreement survive the termination of the Franchise Agreement?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
- 3.7 Survival. This Agreement shall survive the Termination of the Franchise Agreement.
- 21.12 Survival. Any obligation of Franchisee or any Principal that contemplates performance of such obligation after termination or expiration of this Agreement or the transfer of any interest of Franchisee or any Principal therein shall be deemed to survive such termination, expiration or transfer.
Source: Item 22 — CONTRACTS (FDD page 56)
What This Means (2024 FDD)
According to the 2024 Baya Bar Franchise Disclosure Document, the Confidentiality and Non-Compete Agreement survives the termination of the Franchise Agreement. Specifically, Section 3.7 of the Confidentiality and Non-Compete Agreement states that the agreement remains in effect even after the Franchise Agreement ends.
Additionally, Section 21.12 of the Franchise Agreement outlines that any obligation of the franchisee or any principal that requires performance after the termination or expiration of the agreement will continue to be in effect. This ensures that certain responsibilities and duties, especially those related to confidentiality and non-competition, extend beyond the active term of the franchise.
This survival clause is a common practice in franchising to protect the franchisor's interests, trade secrets, and brand reputation even after a franchisee leaves the system. A prospective Baya Bar franchisee should carefully review the terms of both the Franchise Agreement and the Confidentiality and Non-Compete Agreement to fully understand their obligations both during and after the franchise term.