Which sections of the Beggars Pizza Franchise Agreement are explicitly stated to survive the expiration or termination of the agreement?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
In the latter case, all of Franchisee's obligations will remain in full force and effect during each Interim Period as if the Agreement had not expired, but either Franchisor or Franchisee may terminate the Agreement for convenience upon thirty (30) days advance written notice to the other party.
No Interim Period creates any new franchise rights, and, upon expiration of the final Interim Period, Franchisee will be bound by, inter alia, all obligations of the Agreement which by their terms or by reasonable implication, in whole or in part, arise upon, or are to be performed after, expiration, termination, or transfer of the Agreement, including, without limitation, those contained in Sections 10, 16, and 17 hereof.
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to the 2025 Beggars Pizza Franchise Disclosure Document, specifically Item 22, several obligations within the Franchise Agreement remain in effect even after the agreement expires or is terminated. These include obligations found in Sections 10, 16, and 17 of the agreement.
This means that certain duties and responsibilities outlined in these sections continue to bind the franchisee even after the formal franchise relationship concludes. Section 16 likely covers the franchisee's obligations upon termination or expiration, such as ceasing operations and discontinuing the use of confidential information and trademarks. Sections 10 and 17 likely address other key areas, such as post-termination non-compete obligations or dispute resolution processes.
For a prospective Beggars Pizza franchisee, this highlights the importance of carefully reviewing Sections 10, 16, and 17 of the Franchise Agreement to fully understand the long-term commitments and restrictions that will survive the end of the franchise term. It is essential to be aware of these enduring obligations before entering into the agreement, as they can significantly impact the franchisee's future business activities and opportunities.
Understanding these post-termination obligations is a crucial part of due diligence. A potential franchisee should seek legal counsel to fully grasp the implications of these sections and how they might affect their future plans after the franchise agreement concludes.