Until when do the obligations of the Bft Franchisee and its Owners survive the termination of the agreement?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
This Guarantee shall terminate upon the expiration or termination of the Franchise Agreement, except that this Guarantee shall continue in full force and effect with respect to all obligations and liabilities of Franchisee and Guarantor that arise from events that occurred on or before the effective date of such expiration or termination or that are triggered by or survive expiration or termination of the Franchise Agreement This Guarantee is binding upon each Guarantor and its respective estate, executors, administrators, heirs, beneficiaries, and successors in interest.
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or by their nature expires. Without limiting the generality of the foregoing, the parties expressly acknowledge that each of the following provisions of this Agreement will survive the Agreement's expiration or termination: Section 10.4 (Information Security); Section 11 (Relationship of the Parties; Indemnification); Section 12 (Confidential Information); Section 13.1.B (Non-Competition Covenants of Franchisee; After the Term of this Agreement); Section 13.2.B (Non-Solicitation Covenants; After the Term of this Agreement); Section 15.3 (Obligations of Franchisee upon Termination or Expiration); Section 16 (Resolution of Disputes); Section 17 (Miscellaneous Provisions); Section 18 (Acknowledgements); and Section 19 (Entire Agreement).
Source: Item 23 — RECEIPTS (FDD pages 79–265)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, several obligations of the franchisee and its owners survive the termination or expiration of the Franchise Agreement. Specifically, the guarantee provided by the franchisee continues in full effect for all obligations and liabilities that arise from events occurring on or before the termination date, or that are triggered by or survive the termination itself. This ensures that Bft can still pursue claims related to past actions or ongoing responsibilities even after the agreement ends.
Moreover, certain sections of the Franchise Agreement are explicitly stated to survive termination or expiration. These include provisions related to information security, indemnification, confidential information, non-competition covenants, non-solicitation covenants, obligations upon termination or expiration, dispute resolution, miscellaneous provisions, acknowledgments, and the entire agreement clause. This means that even after the franchise agreement concludes, the franchisee remains bound by these specific terms.
For instance, the non-competition and non-solicitation covenants prevent the franchisee from engaging in competing businesses or soliciting customers or suppliers of Bft for a period of two years after termination. Similarly, obligations related to confidential information remain in effect to protect Bft's proprietary information. The survival of these clauses provides Bft with continued protection and recourse against potential breaches, even after the formal franchise relationship has ended. A prospective franchisee should carefully review these sections to understand the full scope of their post-termination responsibilities.