In the Bevaris Alliance agreement, does the restriction apply to the franchisee acting on their own behalf?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
- 20.3 The restrictions imposed on the Franchisee and the Individual by this clause 20 apply to them acting:
- (a) directly or indirectly; and
- (b) on their own behalf or on behalf of, or in conjunction with, any firm, company or person.
Source: Item 23 — RECEIPT (FDD pages 22–88)
What This Means (2024 FDD)
According to the 2024 Bevaris Alliance Franchise Disclosure Document, the restrictions imposed on the franchisee and the individual also apply when they are acting on their own behalf. Specifically, the restrictions apply whether the franchisee or individual is acting directly or indirectly, and whether they are acting on their own behalf or on behalf of, or in conjunction with, any firm, company, or person.
This means that the franchisee cannot bypass the restrictions outlined in the franchise agreement by operating through another entity or by involving other parties. The restrictions are designed to protect Bevaris Alliance's confidential information, trade secrets, and business connections, as well as those of its other franchisees.
This provision is fairly standard in franchise agreements, as franchisors typically want to prevent franchisees from using the franchisor's system and knowledge to compete with the franchise system, even after the franchise agreement has ended. Prospective franchisees should carefully review the specific restrictions outlined in the agreement to understand the full scope of these limitations and how they might impact their future business activities.