Does the arbitration provision for Big Apple Bagels continue after the agreement expires or terminates?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
e. Continuing Obligations. All obligations of Franchisor and Franchisee which expressly or by their nature survive the expiration or termination of this Agreement shall continue in full force and effect subsequent to and notwithstanding its expiration or termination and until they are satisfied in full or by their nature expire.
Source: Item 22 — CONTRACTS (FDD pages 86–87)
What This Means (2025 FDD)
According to Big Apple Bagels' 2025 Franchise Disclosure Document, the obligations of both the franchisor and franchisee that, either expressly or by their nature, are meant to survive the expiration or termination of the agreement will remain in effect. This continuation applies even after the agreement has expired or been terminated, and it lasts until these obligations are completely fulfilled or naturally expire.
For a prospective Big Apple Bagels franchisee, this means that certain responsibilities and duties outlined in the franchise agreement will not simply disappear once the franchise term ends or if the agreement is terminated early. These 'continuing obligations' could include things like maintaining confidentiality, fulfilling financial responsibilities, or adhering to non-compete clauses, depending on the specifics detailed elsewhere in the agreement.
This clause ensures that both Big Apple Bagels and the franchisee are held accountable for their commitments even after the formal business relationship concludes. Franchisees should carefully review the franchise agreement to understand which specific obligations are designed to survive termination or expiration, as these will have a lasting impact on their business activities even after they are no longer operating a Big Apple Bagels franchise.