When does the Big Frog Custom T Shirts More franchise agreement terminate?
Big_Frog_Custom_T_Shirts_More Franchise · 2024 FDDAnswer from 2024 FDD Document
Big Frog Custom T-Shirts, Inc., d/b/a Big Frog Franchise Group (the Company), was formed to offer franchises to qualified professionals including, without limitation, entrepreneurs, business developers, and people looking to start their own opportunity (Franchisees) to operate their own franchised business (Big Frog Custom T-Shirts) and provide custom decorated t-shirts and apparel, and is incorporated in the state of Florida. The Franchise Agreement grants Franchisees the right to purchase printing equipment, forms, supplies, advertising materials, and merchandise from the Company and approved suppliers to sell custom printed products to their customers. Franchisees are licensed to use the Big Frog brand name, within a conditionally designated geographic territory for an initial term of ten years with renewal rights. The Company has Franchisees in the United States of America and Canada.
- 18.1 Franchisee's Obligations.
Upon termination or expiration of this Agreement, all rights and licenses granted hereunder to Franchisee shall immediately terminate and Franchisee and each Principal, if any, shall:
18.1.1 immediately cease to operate the Franchised Business, and shall not thereafter, directly or indirectly identify himself, herself or itself as a current Big Frog owner, franchisee or licensee;
19.5.2 Upon the expiration or earlier termination of this Agreement or upon a Transfer and continuing for twenty-four (24) months thereafter, Franchisee and Principals shall not, either directly or indirectly (including through a spouse, child, or other family member), for themselves or through, on behalf of or in conjunction with any person or entity (i) divert, or attempt to divert, any business or customer of the Franchised Business or of other franchisees in the System to any competitor, by direct or indirect inducement or otherwise; or (ii) participate as an owner, partner, director, officer, employee, consultant or agent or serve in any other capacity in any retail apparel printing business similar to the System within twenty five (25) miles of the Territory or any Big Frog location; or (iii) do or perform, directly or indirectly, any other act injurious or prejudicial to the goodwill associated with the Marks and the System or (iv) in any manner interfere with, disturb, disrupt, decrease or otherwise jeopardize the business of the Franchisor or any Big Frog franchisees.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2024 FDD)
According to the 2024 Franchise Disclosure Document, the Big Frog Custom T Shirts More franchise agreement has an initial term of ten years, during which the franchisee is licensed to use the Big Frog brand name within a designated geographic territory. The agreement may terminate upon the expiration of this initial term or through earlier termination. Termination can be voluntary or involuntary.
Upon termination or expiration of the agreement, the franchisee must immediately cease operating the franchised business and discontinue identifying as a Big Frog Custom T Shirts More owner, franchisee, or licensee. They must also immediately stop using the brand's trademarks, logos, copyrighted material, and other intellectual property.
After the franchise agreement terminates, certain post-termination obligations come into effect. For example, for twenty-four months after the agreement ends, the franchisee is restricted from engaging in any retail apparel printing business similar to the Big Frog Custom T Shirts More system within twenty-five miles of their former territory or any other Big Frog location. This includes not diverting or attempting to divert any business or customers of the franchised business to a competitor.