Is each provision of Article 16 self-executing for Bor Restoration franchisees?
Bor_Restoration Franchise · 2024 FDDAnswer from 2024 FDD Document
16.9 Survival of Obligations
- a. Each provision of this Article 16 is self-executing and will continue in full force and effect subsequent to and notwithstanding the Transfer, expiration, termination, rescission, or finding of unenforceability of this Franchise Agreement (or any part of it).
- b. This Article 16 is for the benefit of and is enforceable by all Parties' successors and assigns.
Source: Item 23 — Receipts (FDD pages 40–202)
What This Means (2024 FDD)
According to Bor Restoration's 2024 Franchise Disclosure Document, each provision within Article 16 of the franchise agreement is designed to be self-executing. This means that these provisions automatically come into effect and remain enforceable regardless of any transfer, expiration, termination, rescission, or a finding of unenforceability of the franchise agreement itself, or any part of it.
This self-executing nature ensures that the obligations and agreements outlined in Article 16 remain valid and binding on all parties involved, including their successors and assigns. This is particularly important because it provides a level of certainty and continuity, ensuring that the terms of Article 16 are upheld even if the franchise relationship changes or ends.
For a prospective Bor Restoration franchisee, this implies that the commitments and responsibilities detailed in Article 16 are not easily dismissed or avoided. Franchisees should carefully review Article 16 to fully understand their enduring obligations, as these will persist under various circumstances affecting the franchise agreement. This could include provisions related to dispute resolution, intellectual property, or other critical aspects of the franchise relationship.