What obligations survive the termination or expiration of a Crown Gold Exchange franchise agreement?
Crown_Gold_Exchange Franchise · 2024 FDDAnswer from 2024 FDD Document
(xiv) Franchisee or any Owner is accused by any governmental authority or third party of any act, or if Franchisee or any Owner commits any act or series of acts, that in Crown Gold Franchising's opinion is reasonably likely to materially and unfavorably affect the Crown Gold Exchange brand.
- 14.3 Effect of Termination. Upon termination or expiration of this Agreement, all obligations that by their terms or by reasonable implication survive termination, including those pertaining to non-competition, confidentiality, indemnity, and dispute resolution, will remain in effect, and Franchisee must immediately:
- (i) pay all amounts owed to Crown Gold Franchising based on the operation of the Business through the effective date of termination or expiration;
- (ii) return to Crown Gold Franchising all copies of the Manual, Confidential Information and any and all other materials provided by Crown Gold Franchising to Franchisee or created by a third party for Franchisee relating to the operation of the Business, and all items containing any Marks, copyrights, and other proprietary items; and delete all Confidential Information and proprietary materials from electronic devices;
- (iii) notify the telephone, internet, email, electronic network, directory, and listing entities of the termination or expiration of Franchisee's right to use any numbers, addresses, domain names, locators, directories and listings associated with any of the Marks, and authorize their transfer to Crown Gold Franchising or any new franchisee as may be directed by Crown Gold Franchising, and Franchisee hereby irrevocably appoints Crown Gold Franchising, with full power of substitution, as its true and lawful attorney-in-fact, which appointment is coupled with an interest; to execute such directions and authorizations as may be necessary or appropriate to accomplish the foregoing; and
- (iv) cease doing business under any of the Marks.
- 14.4 Remove Identification. Within 30 days after termination or expiration, Franchisee shall at its own expense "de-identify" the Location so that it no longer contains the Marks, signage, or any trade dress of a Crown Gold Exchange business, to the reasonable satisfaction of Crown Gold Franchising. Franchisee shall comply with any reasonable instructions and procedures of Crown Gold Franchising for de-identification. If Franchisee fails to do so within 30 days after this Agreement expires or is terminated, Crown Gold Franchising may enter the Location to remove the Marks and de-identify the Location. In this event, Crown Gold Franchising will not be charged with trespass nor be accountable or required to pay for any assets removed or altered, or for any damage caused by Crown Gold Franchising.
Source: Item 22 — CONTRACTS (FDD pages 38–39)
What This Means (2024 FDD)
According to Crown Gold Exchange's 2024 Franchise Disclosure Document, several obligations remain in effect even after the franchise agreement terminates or expires. These include obligations related to non-competition, confidentiality, indemnity, and dispute resolution. Practically, this means that even after a franchisee's relationship with Crown Gold Exchange ends, they are still bound by certain restrictions and responsibilities.
Specifically, the franchisee must pay all outstanding amounts owed to Crown Gold Franchising. They must also return all copies of the manual, confidential information, and any other materials provided by Crown Gold Franchising, including items containing trademarks or copyrights, and delete all confidential information from electronic devices. The franchisee is also required to notify relevant entities (telephone, internet, email, etc.) about the termination of their right to use any numbers, addresses, domain names, or listings associated with Crown Gold Exchange's marks and authorize the transfer of these to Crown Gold Franchising or a new franchisee. Finally, the franchisee must cease doing business under any of Crown Gold Exchange's trademarks.
Within 30 days of termination or expiration, the franchisee is responsible for de-identifying the location, removing all Crown Gold Exchange marks, signage, and trade dress at their own expense. If the franchisee fails to do so, Crown Gold Franchising has the right to enter the location and remove the marks themselves. Furthermore, for two years after the agreement expires or is terminated, the franchisee is restricted from being involved with any competitor within five miles of their former territory or any other Crown Gold Exchange business. These post-termination obligations are designed to protect Crown Gold Exchange's brand, confidential information, and market position.