Does a breach of clause 16 constitute a material breach of the Bevaris Alliance franchise agreement?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
18.3 Material breach. The parties acknowledge and agree that any breach of clause 7, clause 14, clause 15, clause 16, and clause 27.3 shall constitute a material breach for the purposes of this clause.
Source: Item 23 — RECEIPT (FDD pages 22–88)
What This Means (2024 FDD)
According to the 2024 Bevaris Alliance Franchise Disclosure Document, a breach of clause 16 is considered a material breach of the franchise agreement. Clause 16 likely pertains to specific obligations or requirements outlined elsewhere in the agreement.
This designation as a material breach has significant implications for a Bevaris Alliance franchisee. If a franchisee violates clause 16, Bevaris Alliance would have grounds to pursue remedies such as terminating the franchise agreement. This could result in the franchisee losing their business and the rights to operate under the Bevaris Alliance brand.
Other clauses that Bevaris Alliance considers a material breach include clause 7, clause 14, clause 15, and clause 27.3. Prospective franchisees should carefully review the entire franchise agreement, paying close attention to these clauses, to fully understand their obligations and the potential consequences of non-compliance.