After termination of the City Wide franchise agreement, what specific rights, duties, covenants, or obligations of the franchisee remain in effect?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
- 15.1 Termination of this Agreement will not relieve Franchisee of any right, duty, covenant, or obligation relating to the use of the Marks, the Software, the confidentiality and use of the Confidential Information, the maintenance of statements and records and inspection and auditing of records, covenants relating to non-competition, and other Franchisee covenants, Franchisee's post-term obligations, indemnification, and independent contractor status, the availability of equitable relief and payment of costs and expenses, governing law and dispute resolution, severability and construction, and acknowledgments under the Franchise Agreement or any other Agreement.
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, several obligations of the franchisee survive the termination of the franchise agreement. These 'Surviving Provisions' ensure that even after the agreement ends, the franchisee remains bound by certain duties to protect City Wide's interests. These include obligations relating to the use and protection of City Wide's trademarks, maintaining the confidentiality of proprietary information, and abiding by non-competition agreements.
Specifically, the franchisee must continue to protect City Wide's marks and confidential information, maintain accurate records for potential inspection, and adhere to any non-compete covenants that restrict their ability to engage in similar businesses. Additionally, the franchisee remains responsible for indemnifying City Wide against any liabilities and upholding their status as an independent contractor.
Furthermore, the franchisee is still subject to the availability of equitable relief, meaning City Wide can seek court orders to enforce these surviving obligations. The franchisee is also responsible for covering costs and expenses related to enforcing these provisions, and the agreement's governing law and dispute resolution terms remain in effect. These continued obligations are designed to protect City Wide's brand, trade secrets, and competitive position even after a franchise relationship concludes.