Does a breach of clause 27.3 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 27.3 is explicitly defined as a material breach of the franchise agreement. Specifically, clause 18.3 states that any breach of clause 27.3 constitutes a material breach.
This designation as a material breach has significant implications for a Bevaris Alliance franchisee. If a franchisee violates clause 27.3, Bevaris Alliance would have grounds to terminate the franchise agreement. Termination could result in the franchisee losing the right to operate under the Bevaris Alliance brand, as well as potentially losing any investments made in the franchise.
It is important for prospective franchisees to carefully review and understand the obligations outlined in clause 27.3 to avoid any actions that could be considered a material breach. Franchisees should seek legal counsel to fully understand their rights and responsibilities under the franchise agreement.