Does the Floyds 99 franchisee's indemnification obligation survive the termination or expiration of the franchise agreement?

According to the 2025 Floyds 99 Franchise Disclosure Document, the franchisee's indemnification obligations do, in fact, survive the termination or expiration of the franchise agreement. Specifically, Section 19.2 states that upon termination after any hold-over period, the franchisee and those in active concert with the franchisee, including family members, officers, directors, partners and managing agents, are subject to the terms of Sections 20.3, 20.4, 22.2 and 22.3 of this Agreement and all other applicable post-termination obligations contained in this Agreement.

This means that even after the franchise agreement ends, either through termination or expiration, the franchisee remains responsible for certain obligations outlined in the agreement. These obligations can include financial responsibilities, such as paying outstanding royalties or contributions, and adherence to post-termination conditions, such as removing Floyds 99 branding from the former franchise location if the franchisor does not exercise their option to purchase the shop.

For a prospective Floyds 99 franchisee, this highlights the importance of understanding all post-termination obligations before entering into the agreement. It's crucial to carefully review Sections 20.3, 20.4, 22.2, and 22.3, as well as any other sections outlining post-termination responsibilities, to fully grasp the extent of these ongoing obligations. This ensures that the franchisee is aware of their potential liabilities even after the franchise relationship concludes.