Does the expiration or termination of the Baya Bar Franchise Agreement release the Franchisee from liabilities that continue beyond the termination date?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
ore uses thereof, and may be exercised at any time or from time to time as often as may be expedient; and any option or election to enforce any such right or remedy may be exercised or taken at any time and from time to time. The expiration, earlier termination or exercise of Franchisor's rights pursuant to Article 17 shall not discharge or release Franchisee or any Principal from any liability or obligation then accrued, or any liability or obligation continuing beyond, or arising out of, the expiration, the earlier termination or the exercise of such rights under this Agreement.
- 21.10. Consent to Do Business Electronically. The parties to the Franchise Agreement hereby consent to do business electronically.
Source: Item 22 — CONTRACTS (FDD page 56)
What This Means (2024 FDD)
According to Baya Bar's 2024 Franchise Disclosure Document, the expiration or termination of the Franchise Agreement does not release the franchisee from liabilities or obligations that continue beyond the termination date. This means that even after the agreement ends, certain responsibilities and debts remain in effect.
Specifically, any obligation of the franchisee or any principal that requires performance after the termination or expiration of the agreement, or after the transfer of any interest, will continue to apply. This includes, but is not limited to, ceasing operation of the franchised business, refraining from identifying as a Baya Bar owner, and stopping the use of Baya Bar's trademarks and intellectual property. Franchisees must also promptly pay all sums owed to Baya Bar and its affiliates, which can include damages, costs, and attorney's fees resulting from any default by the franchisee.
Furthermore, for a period of 24 months after the agreement's expiration or termination, franchisees are restricted from engaging in activities that could harm the Baya Bar system. This includes diverting business, participating in similar businesses within a five-mile radius of the territory or any Baya Bar location, and any actions that could negatively impact the goodwill associated with the brand. These post-termination obligations are designed to protect Baya Bar's interests and ensure a fair transition after a franchise agreement ends.