Does the expiration, termination, or assignment of the Franchise Agreement affect the obligations in Section 4 for a Beverly Anns Cookie franchise?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
ny agreement between you and the affiliate because of your default.
- 24.2.18 Franchise Owner Agreement Default. If any Owner, or the spouse of any Owner, breaches a Franchise Owner Agreement.
24.2.19 Territory Infringement. You commit Territory Infringement three or more times in any 12 consecutive month period.
Termination with Notice and Opportunity to Cure
In addition to our Termination Rights, we may, in our sole discretion, terminate this Franchise Agreement upon 30 days' written notice if you or an Owner fails to comply with any other provision of this Franchise Agreement (including failure to comply with any provision in the Brand Manual) or any other agreement with us, unless such default is cured, as determined by us in our sole discretion, within such 30 day notice period, each of which shall constitute a material event of default under this Franchise Agreement. If we deliver a notice of default to you pursuant to this Section, we may suspend performance of any of our obligations under this Franchise Agreement until you fully cure the breach.
25. POST TERM OBLIGATIONS
The obligations contained in this Section 25 shall be referred to as your "Post Term Obligations." After the termination, expiration or Transfer of this Franchise Agreement, you agree to undertake each and every one of the obligations listed in this Section.
Cease Operations
Immediately cease to operate the Franchised Business under this Franchise Agreement and the System. You agree to not hold yourself out to the public as a present or former franchise owner of the Franchised Business.
Intellectual Property
Immediately cease to use the Intellectual Property in any manner whatsoever and not use any trademarks or trade names that may be confusingly similar to the Intellectual Property. You acknowledge and agree that any continued use of the Marks would constitute trademark infringement.
Monetary Obligations
Pay us all amounts you owe us and our affiliates within 15 days.
Surviving Covenants
Comply with all covenants described in this Section and otherwise in this Franchise Agreement that apply after the expiration, termination or Transfer of this Franchise Agreement or of an ownership interest by an Owner.
Source: Item 23 — RECEIPTS (FDD pages 57–235)
What This Means (2025 FDD)
According to the 2025 Beverly Anns Cookie Franchise Disclosure Document, the termination, expiration, or transfer of the Franchise Agreement does impact certain obligations. Specifically, after any of these events, franchisees are still obligated to comply with covenants described in Section 25 and elsewhere in the Franchise Agreement that apply after the expiration, termination, or transfer. These are referred to as "Post Term Obligations."
These post-term obligations include ceasing operation of the Franchised Business under the Franchise Agreement and System, and franchisees must not represent themselves as current or former franchise owners. Franchisees must also immediately stop using Beverly Anns Cookie's intellectual property, including trademarks and trade names, and acknowledge that continued use would constitute trademark infringement. All outstanding amounts owed to Beverly Anns Cookie and its affiliates must be paid within 15 days.
Additionally, unless Beverly Anns Cookie exercises its right to purchase the GR Vehicle (and any Additional Equipment), the franchisee is responsible for decommissioning the vehicle by removing all proprietary items and marks, such as vinyl wraps, signage, and lighting, at their own expense. If the franchisee fails to do so, Beverly Anns Cookie has the right to take possession of the vehicle to remove these identifying marks, without liability for trespass or other claims. Franchisees must also provide written evidence of compliance with these obligations within 30 days after the termination, expiration, or transfer date.