Does the arbitration provision in the Big Apple Bagels franchise agreement survive the termination or expiration of the agreement?
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 the 2025 Big Apple Bagels Franchise Disclosure Document, all obligations of both the franchisor and franchisee that, either expressly or by their nature, are meant to continue after the agreement ends will remain in effect even after the expiration or termination of the agreement. These obligations will stay in place until they are either completely fulfilled or naturally expire. This implies that if the arbitration clause is written in a way that it should survive the termination or expiration of the agreement, it will remain in full force and effect.
For a prospective Big Apple Bagels franchisee, this means that any disputes arising even after the franchise agreement has ended could still be subject to arbitration, depending on the specific wording of the arbitration clause. This could include disputes related to post-termination obligations, such as non-compete agreements or payment obligations.
Franchisees should carefully review the specific language of the arbitration clause and any other clauses related to continuing obligations to understand the full scope of their responsibilities and rights, even after the franchise term is over. It is important to seek legal counsel to fully understand the implications of these clauses.