In the Bevaris Alliance agreement, what happens if a statute is amended after the agreement is signed?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
- 1.9 A reference to a statute or statutory provision is a reference to it as amended, extended or re-enacted from time to time; provided that, as between the parties, no such amendment, extension or re-enactment shall apply for the purposes of this agreement to the extent that it would impose any new or extended obligation, liability or restriction on, or otherwise adversely affect the rights of, any party.
Source: Item 23 — RECEIPT (FDD pages 22–88)
What This Means (2024 FDD)
According to the 2024 Bevaris Alliance Franchise Disclosure Document, the franchise agreement addresses the impact of statutory amendments or re-enactments on the agreement. Specifically, while references to statutes or statutory provisions include any amendments, extensions, or re-enactments, these changes will not retroactively impose new or extended obligations, liabilities, or restrictions on any party involved. Nor will they adversely affect the rights of any party, as defined in the original agreement.
In practical terms, this clause protects Bevaris Alliance franchisees from being subjected to new legal requirements or burdens that arise after they have signed the franchise agreement, unless explicitly agreed upon. This provision ensures a degree of stability and predictability in the contractual relationship, as franchisees can rely on the terms and conditions in place at the time of signing, without the risk of unexpected legal changes significantly altering their obligations or rights.
This type of clause is relatively common in franchise agreements, as it seeks to balance the need for compliance with evolving laws and regulations with the franchisee's legitimate expectation of a stable and predictable business arrangement. However, franchisees should still stay informed about potential legal changes that could affect their business and seek legal advice if they are unsure about the implications of any new laws or regulations.