Regarding the Bb.Q Chicken franchise agreement, do the representations and warranties survive termination or expiration of the agreement?
Bb_Q_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
- 22.1.6 All of your representations and warranties contained in this Agreement are complete, correct and accurate as of the date of execution of this Agreement and will survive any termination or expiration of this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 62–283)
What This Means (2025 FDD)
According to the 2025 Bb.Q Chicken Franchise Disclosure Document, the representations and warranties made by the franchisee within the franchise agreement will indeed survive the termination or expiration of the agreement. This means that even after the franchise relationship ends, the franchisee remains accountable for the accuracy and completeness of the statements they made when entering into the agreement.
This survival clause has significant implications for a prospective Bb.Q Chicken franchisee. It ensures that Bb.Q Chicken can hold the franchisee responsible for any misrepresentations or breaches of warranty that come to light even after the franchise has ceased operating. For example, if a franchisee falsely claimed they had no conflicting agreements at the time of signing, Bb.Q Chicken could take action even after the franchise term is over if that misrepresentation is discovered.
Such clauses are relatively standard in franchise agreements to protect the franchisor's interests and ensure franchisees are truthful in their dealings. Franchisees should carefully review all representations and warranties before signing the agreement to avoid potential liabilities later on. It is crucial for franchisees to understand that their initial statements have lasting legal consequences, even beyond the term of the franchise agreement with Bb.Q Chicken.