What is the definition of 'Commencement Date' under the Bevaris Alliance franchise agreement?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
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, the initial term of the franchise agreement is 5 years from the Commencement Date. This is subject to earlier termination as per clause 18 of the agreement.
This means that the franchisee's business operations and the franchise agreement itself will last for five years from a specific 'Commencement Date'. This date marks the official beginning of the franchise term. The agreement can end sooner if certain termination conditions outlined in clause 18 are met.
At the end of the initial term, the franchisee has the option to renew the agreement for an additional 5 years. To do so, the franchisee must provide written notice to Bevaris Alliance not less than 6 months and not more than 8 months before the end of the initial term. Bevaris Alliance must then provide written notice to the franchisee not less than 4 months before the end of the initial term, accepting the renewal if certain conditions are met. These conditions include paying a renewal fee of 10% of the then-current initial franchise fee and having no outstanding material breaches of the agreement.