Does the Mr. Sandless franchise agreement address survival of terms after termination?

According to Mr. Sandless's 2025 Franchise Disclosure Document, the franchise agreement does address the survival of certain terms after termination or expiration. Specifically, the agreement states that any provisions that can be reasonably interpreted to impose an obligation after the termination or expiration of the agreement will survive and remain binding on both parties. This is a fairly standard clause in franchise agreements, designed to protect the franchisor's interests even after the franchisee is no longer operating under the brand.

This survival clause has important implications for a prospective Mr. Sandless franchisee. It means that certain obligations, such as those related to confidentiality, non-competition, or payment of outstanding debts, may continue even after the franchise agreement ends. Franchisees need to understand which specific provisions are intended to survive termination, as these could impact their future business activities or financial obligations.

For example, the Mr. Sandless agreement explicitly states that upon termination or expiration, the franchisee must promptly pay any sums due, cease using the Proprietary Marks, Copyrights and Confidential Information, and refrain from referencing any past association with Mr. Sandless. These obligations are typical examples of terms that usually survive the termination of a franchise agreement to protect the brand's reputation and proprietary information. Franchisees should carefully review the franchise agreement to fully understand the scope of these surviving obligations and their potential impact.