For how long does Section 1.02(b) and (e) survive after the expiration or termination of the agreement for a C3 Wellness Spa?
C3_Wellness_Spa Franchise · 2024 FDDAnswer from 2024 FDD Document
- 1.04. Survival. Upon expiration or termination of this Agreement for any reason, the terms of Section 1.02(d) will survive until all amounts due by Practice are paid in full and/or until Practice's obligations under such provisions are fulfilled; and Section 1.02(b) and (e) will survive for five years.
Source: Item 23 — RECEIPTS (FDD pages 59–293)
What This Means (2024 FDD)
According to C3 Wellness Spa's 2024 Franchise Disclosure Document, specifically Schedule B(m) License Agreement, Sections 1.02(b) and (e) will remain in effect for five years following the expiration or termination of the agreement. This means that certain obligations and restrictions outlined in those sections will continue to bind the franchisee for that period.
Section 1.02 likely contains important provisions regarding ownership, goodwill, and restrictions on the franchisee's actions related to the C3 Wellness Spa brand and trademarks. The survival of these sections ensures that even after the franchise relationship ends, the franchisee cannot take actions that could harm the brand or unfairly compete with C3 Wellness Spa.
For a prospective franchisee, this means understanding the specific obligations within Sections 1.02(b) and (e) and planning for how these will impact their business activities for five years after the franchise term concludes. This could affect their ability to operate a similar business or use related branding in the future. It is important to carefully review these sections with legal counsel to fully understand the implications.