In the Bevaris Alliance agreement, what happens if a statute imposes a new restriction on a party?

According to the 2024 Bevaris Alliance Franchise Disclosure Document, the franchise agreement addresses the impact of new or modified statutes on the parties involved. Specifically, if a statute or statutory provision is amended, extended, or re-enacted, such changes will not automatically apply to the franchise agreement if they impose new obligations, liabilities, or restrictions, or adversely affect the rights of any party. This protection applies only between the parties to the agreement.

This provision ensures that changes in laws or regulations do not retroactively alter the terms of the Bevaris Alliance franchise agreement to the detriment of either the franchisor or the franchisee. It provides a degree of stability and predictability, as the agreement remains governed by the laws in effect at the time of its signing, unless both parties agree otherwise. This can be particularly important for franchisees who make long-term investments based on the existing legal framework.

For a prospective Bevaris Alliance franchisee, this clause offers some assurance that the fundamental terms of their franchise agreement will not be unilaterally changed due to subsequent legislative or regulatory actions. However, it is important to note that this protection is limited to the extent that the changes would impose new burdens or negatively impact existing rights. Franchisees should still stay informed about relevant legal and regulatory developments that could affect their business operations.