What is the deadline for the Bevaris Alliance Franchisor to notify the Franchisee of acceptance of renewal?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
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3. Commencement Date and Term
- 3.1 Initial Term. The Initial Term of the agreement is 5 years from the Commencement Date subject to earlier termination in accordance with clause 18.
- 3.2 Renewed Term. The Franchisee may, by notice in writing to the Franchisor, given not less than 6 months before and not more than 8 months before the end of the Initial Term, request the term of this agreement to be renewed for a period of 5 years after the end of the Initial Term. The Franchisor shall, by notice in writing to the Franchisee, given not less than 4 months before the end of the Initial Term, accept a renewal of the term of this agreement, if:
- (a) the Franchisee has paid or will pay on or before entering into the successor franchise agreement (in accordance with clause 4) a Renewal Fee of ten percent (10%) the Franchisor's then current Initial Fee;
- (b) at the end of the Initial Term, there are no outstanding material breaches by the Franchisee or the Individual of this agreement, and there are no grounds on which the Franchisor has a right to terminate this agreement under clause 18;
Source: Item 23 — RECEIPT (FDD pages 22–88)
What This Means (2024 FDD)
According to the 2024 Bevaris Alliance Franchise Disclosure Document, if a franchisee wants to renew their franchise agreement, they must provide written notice to Bevaris Alliance between 6 and 8 months before the end of their current term. Bevaris Alliance, in turn, must notify the franchisee in writing whether they accept the renewal request.
Specifically, Bevaris Alliance must provide this notification to the franchisee no less than 4 months before the end of the initial franchise term. This timeline ensures that both parties have sufficient time to prepare for either the continuation of the franchise or its termination.
To be eligible for renewal, the franchisee must pay a Renewal Fee of 10% of the then-current Initial Fee and must not be in material breach of the franchise agreement at the time of renewal. Additionally, the franchisee and individual must have performed all obligations under the agreement, including training, to the reasonable satisfaction of Bevaris Alliance.