How does the Bevaris Alliance agreement define 'Commencement Date'?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
3.1 Initial Term. The Initial Term of the agreement is 5 years from the Commencement Date subject to earlier termination in accordance with clause 18.
- 3.2 Renewed Term. The Franchisee may, by notice in writing to the Franchisor, given not less than 6 months before and not more than 8 months before the end of the Initial Term, request the term of this agreement to be renewed for a period of 5 years after the end of the Initial Term. The Franchisor shall, by notice in writing to the Franchisee, given not less than 4 months before the end of the Initial Term, accept a renewal of the term of this agreement, if:
- (a) the Franchisee has paid or will pay on or before entering into the successor franchise agreement (in accordance with clause 4) a Renewal Fee of ten percent (10%) the Franchisor's then current Initial Fee;
- (b) at the end of the Initial Term, there are no outstanding material breaches by the Franchisee or the Individual of this agreement, and there are no grounds on which the Franchisor has a right to terminate this agreement under clause 18;
Source: Item 23 — RECEIPT (FDD pages 22–88)
What This Means (2024 FDD)
Based on the 2024 Franchise Disclosure Document, the definition of 'Commencement Date' in the Bevaris Alliance franchise agreement is not explicitly provided within the excerpts. However, the document does mention the 'Commencement Date' in the context of the initial term of the agreement.
Specifically, the FDD states that the initial term of the franchise agreement is 5 years from the Commencement Date, subject to earlier termination based on the conditions outlined in clause 18 of the agreement. The franchisee has the option to renew the agreement for an additional 5 years if they provide written notice to Bevaris Alliance not less than 6 months and not more than 8 months before the end of the initial term.
To successfully renew, the franchisee must pay a Renewal Fee of ten percent (10%) of Bevaris Alliance's then-current Initial Fee and must not be in material breach of the agreement at the end of the initial term. Since the specific definition of 'Commencement Date' is not provided, a prospective franchisee should seek clarification from Bevaris Alliance regarding how this date is determined, as it marks the start of the franchise term and impacts renewal options.