Which covenants in the Hck Hot Chicken franchise agreement survive termination?
Hck_Hot_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
- 15.2 Survival of Obligations.
Termination or expiration shall be without prejudice to any other rights or remedies that Franchisor or Franchisee, as the case may be, shall have in law or in equity, including the right to recover benefit of the bargain damages.
In no event shall a termination or expiration of this Agreement affect Franchisee's obligations to take or abstain from taking any action in accordance with this Agreement.
The provisions of this Agreement which by their nature or expressly constitute post-termination (or post-expiration) covenants and agreements including the obligation of Franchisor and Franchisee to arbitrate any and all disputes shall survive the termination or expiration of this Agreement.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 54)
What This Means (2025 FDD)
According to Hck Hot Chicken's 2025 Franchise Disclosure Document, the franchise agreement contains provisions that continue even after the agreement expires or is terminated. These include obligations for both Hck Hot Chicken and the franchisee to take certain actions or refrain from taking certain actions.
Specifically, the agreement states that termination or expiration does not affect either party's rights or remedies in law or equity, including the right to recover damages. Furthermore, any provisions that, by their nature or express terms, are meant to apply post-termination or post-expiration will remain in effect. This includes the requirement for both parties to arbitrate any disputes.
This means that even after the franchise agreement ends, certain obligations and responsibilities remain in place for both the franchisee and Hck Hot Chicken. Franchisees should carefully review the franchise agreement to understand which specific covenants and agreements survive termination, as these could have significant implications even after the business relationship concludes.