Does the release of claims in the Lees Famous Recipe agreement survive the execution of the agreement?
Lees_Famous_Recipe Franchise · 2025 FDDAnswer from 2025 FDD Document
The covenants stated in this Section will survive the termination or expiration of this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 70–287)
What This Means (2025 FDD)
The 2025 Lees Famous Recipe Franchise Disclosure Document states that certain covenants within the agreement survive the termination or expiration of the agreement. Specifically, the covenants outlined in Section 12 of the agreement, which include the post-term covenant not to compete and the right to seek injunctive relief, remain in effect even after the franchise agreement ends.
This means that even after the franchise agreement expires or is terminated, the franchisee and each Principal Owner are still bound by the terms of the post-term covenant not to compete for a period of two years. This restriction prevents them from engaging in any Competing Business within a specified area, which includes the Development Area or within a five-mile radius of any Lees Famous Recipe Restaurant.
Additionally, Lees Famous Recipe retains the right to seek injunctive relief to prevent violations of these covenants, emphasizing the importance of adhering to these terms even after the agreement's conclusion. This ensures the protection of Lees Famous Recipe's interests and goodwill associated with its Marks and System, even after a franchisee's departure.