factual

Does Section 24 of the Body Brain Center franchise agreement survive termination?

Body_Brain_Center Franchise · 2025 FDD

Answer from 2025 FDD Document

  • 24.11 Survival.

All provisions that expressly or by their nature survive the termination, expiration or Transfer of this Agreement (or the Transfer of an ownership interest in the franchise) shall continue in full force and effect subsequent to and notwithstanding its termination, expiration or Transfer and until they are satisfied in full or by their nature expire, including, without limitations, Section 13, Section 14, Section 16, Section 18, Section 21, Section 22 and Section 24.

Source: Item 23 — RECEIPT (FDD pages 43–178)

What This Means (2025 FDD)

According to the 2025 Body Brain Center Franchise Disclosure Document, Section 24 of the franchise agreement includes provisions that survive the termination, expiration, or transfer of the agreement. Specifically, Section 24.11 states that provisions that expressly or by their nature are meant to survive termination will remain in effect. This survival continues until these provisions are fully satisfied or naturally expire.

Several sections are explicitly listed as examples of those that survive termination, including Section 13, Section 14, Section 16, Section 18, Section 21, Section 22, and Section 24 itself. This means that franchisees must continue to adhere to the stipulations within these sections even after the franchise agreement has ended, whether through termination, expiration, or transfer of ownership.

For a prospective Body Brain Center franchisee, this survival clause has significant implications. It means that certain obligations and restrictions, such as those pertaining to confidential information, non-compete agreements, or payment obligations, may extend beyond the period during which the franchise is active. Franchisees should carefully review these sections to understand the long-term commitments they are making. Understanding these post-termination obligations is crucial for planning future business activities and avoiding potential legal issues with Body Brain Center after the franchise agreement concludes.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.