Does the arbitration provision in the Bhc franchise agreement remain in effect after the agreement expires or terminates?

According to Bhc's 2025 Franchise Disclosure Document, the terms outlined in Article 14 of the franchise agreement will remain in effect even after the agreement has been terminated, has expired, or has been canceled. This means that any provisions within Article 14, which likely includes the arbitration clause, will continue to bind both the franchisee and Bhc even after the franchise relationship ends.

For a prospective Bhc franchisee, this is an important consideration. It means that even after the franchise agreement's term is over, certain obligations and rights, such as the requirement to arbitrate disputes, will still apply. This could affect how disagreements are resolved, potentially requiring arbitration instead of court litigation even after the franchise is no longer operating. Franchisees should carefully review Article 14 to understand exactly which provisions survive termination or expiration.

This survival clause is fairly common in franchise agreements. It is designed to protect the franchisor's interests and ensure that certain obligations, such as those related to intellectual property, non-competition, and dispute resolution, continue to be enforced even after the franchise relationship has ended. Franchisees should seek legal counsel to fully understand the implications of these clauses and how they might affect their rights and responsibilities post-termination or expiration.