What is the consequence if a Bevaris Alliance franchisee does not start business by the Commencement Date?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
7.1 The Franchisee shall start business on the Commencement Date and, at all times during the Term, in relation to the Franchisee's Business, comply with the obligations set out in this clause 7.
18. Termination
- 18.1 Termination for cause by Franchisor. The Franchisor may terminate this agreement with immediate effect (or following such notice period as it sees fit) without prejudice to any of its rights or remedies, by giving written notice to the Franchisee and the Individual if:
- (b) the Franchisee or Individual commits a material breach of any term of this agreement (other than failure to pay any amounts due under this agreement), the Manual, or any other written agreement between the Franchisor and Franchisee or involving the Franchisee though Franchisee is not a party to such other written agreement (such as a Food Service Agreement) and (if such breach is remediable) fails to remedy that breach (or adequately assist Franchisor in the remedy of a Food Service Agreement) within a period of 14 (fourteen) days after being notified in writing to do so; or
Source: Item 23 — RECEIPT (FDD pages 22–88)
What This Means (2024 FDD)
According to the 2024 Bevaris Alliance Franchise Disclosure Document, franchisees are obligated to start their business on the Commencement Date as outlined in clause 7.1 of the franchise agreement. Failure to do so constitutes a breach of the franchise agreement.
Clause 18.1(b) states that if a franchisee commits a material breach of any term of the agreement, including the Manual, or any other written agreement with the franchisor, and fails to remedy that breach within 14 days after written notification, Bevaris Alliance may terminate the agreement. This termination can occur with immediate effect, without affecting any other rights or remedies available to Bevaris Alliance.
In practical terms, if a Bevaris Alliance franchisee fails to open their business by the Commencement Date, they risk having their franchise agreement terminated if they do not rectify the situation within 14 days of receiving written notice from the franchisor. This could result in the loss of their franchise rights and any investments made into the business. Prospective franchisees should carefully consider their ability to meet the Commencement Date and understand the potential consequences of failing to do so.