Can company-owned outlets of Bevaris Alliance be established in the same area as a franchisee's Branded Business?

According to Bevaris Alliance's 2024 Franchise Disclosure Document, franchisees do not receive an exclusive territory. This means that Bevaris Alliance retains the right to establish both franchised and company-owned outlets in the same area where a franchisee operates their Branded Business. These outlets may directly compete with the franchisee's business.

This lack of territorial exclusivity is a significant consideration for potential franchisees. Without an exclusive territory, a franchisee could face direct competition from other Bevaris Alliance outlets, including those owned and operated by the company itself. This could impact the franchisee's revenue and profitability, as customers may choose to patronize other nearby locations.

Prospective franchisees should carefully evaluate the potential for competition from other Bevaris Alliance outlets in their desired area. It would be prudent to discuss the company's expansion plans and criteria for establishing new locations with the franchisor. Understanding the franchisor's strategy for market development is crucial for making an informed investment decision.

While the FDD clearly states that exclusive territories are not granted, prospective franchisees may want to inquire about any internal policies or guidelines Bevaris Alliance uses to determine the placement of new company-owned or franchised locations. Understanding these factors can help a franchisee assess the potential risk of direct competition and make informed decisions about site selection and business planning.