What happens to obligations that expressly arise after the termination of the Floors To Go agreement?

According to Floors To Go's 2025 Franchise Disclosure Document, all obligations of the parties that expressly arise upon or after the termination of the Franchise Agreement will continue even after the agreement is terminated. This means that certain duties and responsibilities outlined in the agreement do not simply disappear once the franchise relationship ends.

For a prospective Floors To Go franchisee, this clause ensures that both the franchisee and franchisor remain accountable for specific obligations that are designed to take effect after the agreement's termination. These obligations could include clauses related to confidentiality, non-compete agreements, or financial responsibilities that extend beyond the active term of the franchise.

This survival clause is a fairly standard practice in franchising, intended to protect both parties and ensure that certain crucial aspects of the agreement are honored even after the formal business relationship has concluded. Franchisees should carefully review the Franchise Agreement to understand which specific obligations are designed to survive termination, as these will vary depending on the nature of the franchise and the terms of the agreement.