Does Section 13 of the Body Brain Center franchise agreement survive termination?
Body_Brain_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
- (ii) pay us all amounts that you owe us;
- (iii) comply with all covenants described in Section 14 that apply after the expiration, termination or Transfer of this Agreement or the disposal of an ownership interest by an Owner;
Source: Item 23 — RECEIPT (FDD pages 43–178)
What This Means (2025 FDD)
According to the 2025 Body Brain Center Franchise Disclosure Document, Section 13 outlines the fees associated with the franchise agreement. These fees include the initial franchise fee, royalty fees, other fees and payments, and late fees. The document does not explicitly state whether the obligations within Section 13 survive the termination of the franchise agreement.
However, Section 21.1(ii) does state that upon termination, franchisees must pay all amounts owed to Body & Brain Center. This suggests that the payment obligations detailed in Section 13, such as outstanding royalty fees or other charges, would indeed survive the termination of the agreement.
Prospective Body & Brain Center franchisees should seek clarification from the franchisor regarding which specific obligations within Section 13 continue after termination. Understanding the extent of these post-termination financial responsibilities is crucial for making an informed investment decision. It is also important to note that the franchisee must comply with all covenants described in Section 14 that apply after the expiration, termination or Transfer of this Agreement.