What is the deadline for the Bevaris Alliance franchisor to notify the franchisee in writing of their acceptance of the renewal?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
encement 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, the franchisor must notify the franchisee in writing regarding the acceptance of a renewal not less than 4 months before the end of the initial term. To initiate the renewal process, the franchisee must provide written notice to Bevaris Alliance, requesting a renewal, no less than 6 months and no more than 8 months before the initial term expires, which is 5 years from the commencement date.
To secure the renewal, the franchisee must meet specific conditions. These include paying a Renewal Fee equal to ten percent of Bevaris Alliance's then-current Initial Fee, ensuring there are no outstanding material breaches of the franchise agreement at the end of the initial term, and fulfilling all obligations under the agreement, including training requirements. The franchisee's business must also meet Bevaris Alliance's standards as outlined in the current franchise agreement and manual. Additionally, the franchisee must execute a general release in favor of Bevaris Alliance.
If these conditions are met, the renewal will be formalized either through a written confirmation signed by both parties or, if required by Bevaris Alliance, by entering into a new agreement based on the franchisor's current form. Notably, upon renewal, the franchisee will not be required to pay the Initial Fee again, and Bevaris Alliance will not be obligated to provide the initial support and training typically associated with a new franchise agreement. This ensures a smoother transition into the renewed term for both parties.