What happens to the indemnity 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 Better Blend's 2024 Franchise Disclosure Document, upon termination or expiration of the Franchise Agreement, the franchisee's indemnity obligations, as outlined in Article 16, will remain in effect. This means that even after the franchise agreement ends, the franchisee may still be responsible for covering losses, damages, or liabilities that Better Blend incurs due to the franchisee's actions or inactions during the term of the agreement.
This survival of obligations is a common practice in franchising, designed to protect the franchisor from potential long-term repercussions of the franchisee's conduct. The franchisee's duty to indemnify Better Blend continues beyond the termination date for matters arising during the franchise term.
In addition to indemnity, other obligations such as those pertaining to non-competition (Section 13.2(b)), confidentiality (Section 13.1), and dispute resolution (Article 17) also survive the termination or expiration of the Better Blend Franchise Agreement. Therefore, franchisees should carefully review these sections to understand the full scope of their responsibilities even after the agreement concludes.