Which covenants in the Hck Hot Chicken Development Agreement survive its expiration or termination?
Hck_Hot_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
The covenants contained in this Development Agreement which, by their nature or terms, require performance by the parties after the expiration or termination of this Development Agreement shall be enforceable notwithstanding said expiration or other termination of this Development Agreement for any reason whatsoever.
Source: Item 23 — RECEIPTS (FDD pages 55–245)
What This Means (2025 FDD)
According to the 2025 Hck Hot Chicken FDD, the covenants within the Development Agreement that necessitate ongoing performance by either party, even after the agreement's expiration or termination, will remain in effect. This means that any obligations that naturally extend beyond the term of the agreement, based on their nature or specific terms, will continue to be enforceable.
This provision ensures that certain responsibilities and promises made within the Development Agreement aren't nullified simply by the agreement's end. For a prospective Hck Hot Chicken area developer, this implies that they may still be bound by certain clauses even after the Development Agreement has expired or been terminated.
For example, this could pertain to clauses regarding confidentiality, non-compete agreements (if applicable and legally sound), or payment obligations that extend over time. It is important for a potential franchisee to carefully review the Development Agreement to understand which specific covenants are designed to survive the termination or expiration of the agreement and to fully grasp the implications of these ongoing obligations.