Which sections of the Chem Dry agreement survive the termination of the agreement?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
- Survival. Accrued payment obligations and Sections 9, 13, 15, 17, 18, 19, 20, 21 and 22 in the Agreement shall survive the termination of the Agreement.
Source: Item 22 — CONTRACTS (FDD page 68)
What This Means (2024 FDD)
According to the 2024 Chem Dry Franchise Disclosure Document, certain obligations and sections of the agreement survive termination. Specifically, accrued payment obligations, along with sections 9, 13, 15, 17, 18, 19, 20, 21, and 22 of the agreement, remain in effect even after the franchise agreement is terminated.
This means that even after the franchise relationship ends, a franchisee may still be responsible for any outstanding payments owed to Chem Dry. Additionally, the sections listed, which likely cover topics such as intellectual property, confidentiality, dispute resolution, and other key aspects of the agreement, will continue to bind both parties. This is a common practice in franchising to protect the franchisor's interests and ensure ongoing compliance with certain standards and obligations.
Prospective Chem Dry franchisees should carefully review these sections of the franchise agreement to understand their post-termination obligations. Understanding which specific clauses remain in effect can help a franchisee anticipate potential liabilities or responsibilities that extend beyond the active term of the franchise.