Does Section 18 of the Hck Hot Chicken Franchise Agreement survive the termination of the agreement?
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 the 2025 Hck Hot Chicken Franchise Disclosure Document, Section 15.2 addresses the survival of obligations after termination or expiration of the franchise agreement. It states that termination or expiration does not affect either the franchisor's or franchisee's rights or remedies in law or equity, including the right to recover damages.
Furthermore, the FDD specifies that the franchisee's obligations to take or abstain from taking certain actions, as outlined in the agreement, remain in effect even after termination or expiration. This means that certain responsibilities and restrictions continue to apply to the franchisee, even after the franchise relationship ends.
Specifically, provisions of the agreement that, by their nature or express terms, constitute post-termination covenants and agreements will survive termination or expiration. This includes the obligation of both Hck Hot Chicken and the franchisee to arbitrate any and all disputes. This ensures that certain key aspects of the agreement, such as dispute resolution, remain enforceable even after the franchise term concludes.