Does the indemnity obligation of an applicant to Marble Slab Creamery survive the termination, expiration, or cancellation of the Franchise Agreement?
Marble_Slab_Creamery Franchise · 2025 FDDAnswer from 2025 FDD Document
The covenants contained in this Agreement which, by their nature or terms, require performance by the parties after the expiration or termination of this Agreement shall be enforceable notwithstanding said expiration or other termination of this Agreement for any reason whatsoever.
Source: Item 23 — RECEIPT (FDD pages 101–346)
What This Means (2025 FDD)
According to the 2025 Marble Slab Creamery FDD, the covenants within the agreement that require performance after the agreement's termination or expiration remain enforceable. This means that any obligations, including indemnity obligations, that are designed to be fulfilled even after the franchise relationship ends will continue to be in effect.
For a prospective Marble Slab Creamery franchisee, this implies that certain responsibilities and duties agreed upon in the Franchise Agreement will not simply disappear upon the termination or expiration of the agreement. These surviving covenants could include, but are not limited to, non-compete clauses, confidentiality agreements, and, importantly, indemnification obligations.
Therefore, if a franchisee is obligated to indemnify Marble Slab Creamery against certain liabilities or losses, that obligation could persist even after the franchise agreement is no longer active. This ensures that both parties continue to be bound by specific terms necessary for the protection of their respective interests, even beyond the formal franchise relationship.