Does the indemnity clause in the Hck Hot Chicken franchise agreement survive the termination, expiration, or cancellation of the agreement?
Hck_Hot_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
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, certain obligations within the franchise agreement survive its termination or expiration. Specifically, the document states that provisions which, by their nature or express terms, are meant to continue after the agreement ends, remain in effect. This includes obligations related to arbitration of disputes between Hck Hot Chicken and the franchisee.
This means that even after the franchise agreement concludes, a franchisee may still be bound by certain responsibilities. These include abiding by post-termination covenants and agreements that are explicitly stated to survive termination or expiration. This ensures that both Hck Hot Chicken and the franchisee retain certain rights and obligations even after the business relationship has formally ended.
For a prospective Hck Hot Chicken franchisee, this clause highlights the importance of carefully reviewing all sections of the franchise agreement to understand which obligations extend beyond the termination or expiration date. Understanding these enduring responsibilities is crucial for making informed decisions about entering into the franchise agreement and planning for the future, whether the franchise is successful or not.