What aspects of the Buildingstars franchisee's obligations survive the termination, expiration, assignment, or transfer of the agreement?

According to Buildingstars's 2025 Franchise Disclosure Document, certain obligations of the franchisee survive the termination, expiration, assignment, or transfer of the franchise agreement. Specifically, the franchisee's obligations regarding trade secrets, indemnification, and the restrictive covenant remain in full force even after the agreement ends. Additionally, any accrued financial obligations of the franchisee to Buildingstars also survive the termination, expiration, assignment, or transfer of the agreement.

This means that even after a Buildingstars franchise agreement is terminated or expires, the franchisee must continue to protect Buildingstars's trade secrets and confidential information. The franchisee also remains responsible for any liabilities or legal claims for which they agreed to indemnify Buildingstars during the term of the agreement. Furthermore, the restrictive covenant, which typically prevents the franchisee from competing with Buildingstars for a certain period and within a specific geographic area, remains in effect.

For a prospective Buildingstars franchisee, this highlights the importance of understanding the scope and duration of these surviving obligations. The franchisee should carefully review the sections of the franchise agreement that define trade secrets, indemnification responsibilities, and the terms of the restrictive covenant to fully grasp their post-termination obligations. It is also important to ensure all financial obligations to Buildingstars are met to avoid any further complications after the franchise agreement ends.