Does the termination or expiration of the Bft Franchise Agreement affect any claims the Franchisor may have against the Franchisee?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
K. Termination or expiration of this Agreement shall not affect, modify or discharge any claims, rights, causes of action or remedies, which Franchisor may have against Franchisee, whether under this Agreement or otherwise, for any reason whatsoever, whether such claims or rights arise before or after termination.
Source: Item 23 — RECEIPTS (FDD pages 79–265)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, the termination or expiration of the Franchise Agreement does not impact any existing claims, rights, causes of action, or remedies that Bft may have against the franchisee. This applies whether these claims arise before or after the termination.
This provision ensures that Bft retains the ability to pursue any legal recourse against a franchisee even after the franchise agreement has ended. This could include claims related to unpaid fees, breaches of contract, or any other issues that occurred during the term of the agreement. For a prospective franchisee, this means that any unresolved disputes or liabilities to Bft will not simply disappear upon the agreement's termination; Bft can still take action to recover what is owed or address any damages incurred.
This type of clause is fairly standard in franchise agreements, as it protects the franchisor's interests and ensures accountability even after the business relationship has concluded. Franchisees should be aware of this provision and understand that their obligations to Bft may extend beyond the formal term of the franchise agreement.