What happens to the dispute resolution obligations of a Better Blend franchisee upon termination of the franchise agreement?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
- 14.3 Effect of Termination. Upon termination or expiration of this Agreement, all obligations that by their terms or by reasonable implication survive termination, including those pertaining to non-competition (Section 13.2(b)), confidentiality (Section 13.1), indemnity (Article 16), and dispute resolution (Article 17), will remain in effect, and Franchisee must immediately:
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2024 FDD)
According to the 2024 Better Blend Franchise Disclosure Document, the obligation to adhere to dispute resolution processes survives the termination or expiration of the franchise agreement. Specifically, Article 17, which addresses dispute resolution, remains in effect even after the agreement ends. This means that any disputes arising even after the franchise has closed will still be subject to the dispute resolution terms outlined in the original agreement.
This condition is fairly standard in franchising, as it ensures that both Better Blend and the franchisee have a clear process for resolving any lingering issues related to the franchise operation, even after the business relationship has formally ended. These surviving obligations typically cover matters such as non-competition clauses, confidentiality agreements, and indemnification responsibilities, in addition to dispute resolution.
For a prospective Better Blend franchisee, this means understanding Article 17 of the franchise agreement thoroughly. Franchisees should be aware that they may be required to engage in mediation or arbitration, as specified in the agreement, to resolve any post-termination disputes. It is important to factor in potential legal costs and time commitments associated with such proceedings, even after the franchise is no longer operational. Franchisees should seek legal counsel to fully understand their rights and obligations under the dispute resolution provisions, both during the term of the franchise agreement and after its termination.