In the Baya Bar franchise agreement, are the rights and remedies of the parties continuing?
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 franchise agreement specifies that certain obligations continue even after the agreement expires or is terminated. Specifically, the document states that the expiration or termination of the agreement does not release the franchisee from liabilities or obligations that have already accrued or those that continue beyond the termination date. This means that if a franchisee owes money or has other outstanding responsibilities to Baya Bar at the time of termination, those obligations remain in effect.
Additionally, any obligation of the franchisee that requires performance after the termination or expiration of the agreement will also survive. This could include things like non-compete clauses or confidentiality agreements. Baya Bar ensures that these responsibilities remain enforceable even after the franchise relationship ends, protecting the brand's interests and confidential information.
This continuation of rights and remedies is a fairly standard practice in franchising. It protects Baya Bar from potential losses or damages resulting from a franchisee's actions, even after the franchise agreement is no longer in effect. Prospective franchisees should carefully review these clauses to understand their ongoing responsibilities and potential liabilities, which may extend beyond the term of the franchise agreement.