Which sections of the Body20 franchise agreement survive the expiration, termination, or transfer of the agreement?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
- 17.8 Survival. Each provision of this Agreement that expressly or by reasonable implication is to be performed, in whole or in part, after the expiration, termination, or Transfer of this Agreement will survive such expiration, termination, or Transfer, including Sections 9 (Intellectual Property), 10 (Proprietary Information), 11 (Indemnification), 12 (Noncompete Covenants), and 15 (Your Obligations Upon Expiration or Termination).
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, several sections of the franchise agreement continue to apply even after the agreement expires, is terminated, or is transferred. These sections are those that, either explicitly or implicitly, require actions or have implications that extend beyond the agreement's active term.
Specifically, the sections that survive include Section 9, which pertains to intellectual property, ensuring that the franchisee's obligations regarding Body20's trademarks, copyrights, and other intellectual assets continue. Section 10, covering proprietary information, also survives, meaning the franchisee must maintain the confidentiality of Body20's trade secrets and confidential business information. Section 11, which deals with indemnification, remains in effect, potentially requiring the franchisee to cover losses or damages incurred by Body20 even after the franchise agreement has ended. Section 12, addressing noncompete covenants, also survives, restricting the franchisee's ability to engage in competitive activities. Finally, Section 15, which outlines the franchisee's obligations upon expiration or termination, remains in force, detailing the steps the franchisee must take when the agreement concludes.
This survival clause is a standard practice in franchising, designed to protect the franchisor's interests and ensure ongoing compliance with key provisions even after the formal agreement ends. Prospective Body20 franchisees should carefully review these sections to understand their long-term obligations and potential liabilities.