In the context of the Bevaris Alliance agreement, what constitutes 'events, circumstances or causes beyond its reasonable control'?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
- 27.1 Force Majeure. Neither party shall be in breach of this agreement nor liable for delay in performing, or failure to perform, any of its obligations under this agreement if such delay or failure result from events, circumstances or causes beyond its reasonable control. If the period of delay or non-performance continues for 3 months, the party not affected may terminate this agreement by giving 30 days' written notice to the affected party.
Source: Item 23 — RECEIPT (FDD pages 22–88)
What This Means (2024 FDD)
According to the 2024 Bevaris Alliance Franchise Disclosure Document, the franchise agreement addresses 'Force Majeure' in section 27.1. This clause states that neither party will be in breach of the agreement nor liable for delays or failures to perform their obligations if these issues arise from events, circumstances, or causes beyond their reasonable control.
This 'Force Majeure' clause protects both Bevaris Alliance and the franchisee from liability if unforeseen events prevent them from fulfilling their contractual duties. If such a delay or non-performance continues for three months, the unaffected party has the right to terminate the agreement by providing 30 days' written notice to the affected party.
This type of clause is relatively standard in franchise agreements. It is important for a prospective franchisee to understand what events would be considered 'beyond reasonable control' as defined by Bevaris Alliance. This understanding can help the franchisee assess the risks and potential impacts on their business operations and the franchise agreement.