Which provisions of the Seller Franchise Agreement with Burneys Sweets More survive termination?
Burneys_Sweets_More Franchise · 2025 FDDAnswer from 2025 FDD Document
a. any obligations to pay money to Franchisor owed under either the Seller Franchise Agreement or the guaranty prior to Closing; or
b. the provisions of the Seller Franchise Agreement that, either expressly or by their nature, survive termination of the Seller Franchise Agreement (including without limitation the post-termination restrictive covenants, audit rights, dispute resolution and notice, and confidentiality provisions of the Seller Franchise Agreement).
Source: Item 23 — RECEIPT (FDD pages 50–199)
What This Means (2025 FDD)
According to Burneys Sweets More's 2025 Franchise Disclosure Document, certain obligations and provisions within the Seller Franchise Agreement survive its termination. Specifically, any monetary obligations owed to Burneys Sweets More under the Seller Franchise Agreement or any related guaranty prior to the closing date of the transfer remain in effect.
In addition to financial obligations, certain provisions of the Seller Franchise Agreement continue even after termination. These include post-termination restrictive covenants, which typically limit the seller's ability to compete with Burneys Sweets More after the agreement ends. Audit rights, allowing Burneys Sweets More to review financial records even after termination, also survive.
Furthermore, the dispute resolution and notice provisions, which govern how disagreements are handled, and the confidentiality provisions, which protect Burneys Sweets More's proprietary information, remain in force after the Seller Franchise Agreement is terminated. This ensures that both parties continue to adhere to these critical aspects of the agreement even after the franchise relationship has ended.