Which sections and articles of the Bimbo Foods Bakeries Distribution agreement survive termination of the agreement?
Bimbo_Foods_Bakeries_Distribution Franchise · 2025 FDDAnswer from 2025 FDD Document
In the event of the sale of all of the Distribution Rights, this Agreement will automatically terminate concurrently upon the effective date of Closing provided, however, the parties will remain bound by the provisions of this Agreement that are intended to survive termination listed in Section 14.3.
Source: Item 23 — RECEIPTS (FDD pages 84–312)
What This Means (2025 FDD)
According to Bimbo Foods Bakeries Distribution's 2025 Franchise Disclosure Document, in the event of the sale of all Distribution Rights, the agreement will automatically terminate upon the closing date. However, the parties will remain bound by the provisions of the agreement that are intended to survive termination as listed in Section 14.3.
This means that even after the Distribution Agreement ends, certain obligations and rights between Bimbo Foods Bakeries Distribution and the distributor may continue. Franchise agreements often include clauses that extend beyond the termination date to protect the brand's interests and ensure a smooth transition.
Prospective franchisees should carefully review Section 14.3 of the Bimbo Foods Bakeries Distribution Distribution Agreement to understand exactly which provisions remain in effect after termination. Understanding these surviving obligations is crucial for planning an exit strategy or anticipating potential liabilities even after the business relationship concludes.