In the Bevaris Alliance agreement, what is the impact of a statute being extended?
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, a reference to a statute or statutory provision includes any amendments, extensions, or re-enactments. However, an extension or re-enactment of a statute will not apply if it imposes any new or extended obligation, liability, or restriction on any party, or if it adversely affects the rights of any party.
For a prospective Bevaris Alliance franchisee, this means that changes to laws or regulations after the franchise agreement is signed will generally not increase their obligations or negatively impact their rights under the agreement. This clause aims to protect franchisees from being subjected to new legal burdens that arise after they have entered into the franchise agreement.
This provision provides a degree of stability and predictability for the franchisee, as it limits the extent to which future legislative changes can alter the terms of the franchise agreement. Franchisees should be aware of this protection, but also understand that it applies only to the extent that the changes would impose new obligations or adversely affect their rights. It is advisable for franchisees to stay informed about relevant legislation and seek legal counsel if they believe a statutory change might impact their franchise agreement.