For Bevaris Alliance, what is the definition of 'Customer' in terms of their relationship with the Franchisee?

According to the 2024 FDD, Bevaris Alliance defines a 'Restricted Customer' as any firm, company, or person who, during the 12 months prior to the termination date of the franchise agreement, was a customer of or in the habit of dealing with the franchisee. This definition is relevant in the context of post-termination restrictions.

This definition is important because it identifies the entities or individuals that a franchisee is restricted from soliciting or doing business with after the franchise agreement ends. The 12-month look-back period provides a clear timeframe for determining who qualifies as a 'Restricted Customer.' This restriction likely aims to protect Bevaris Alliance's goodwill and customer relationships by preventing a former franchisee from leveraging their knowledge of and relationships with existing customers to unfairly compete with the franchisor or its remaining franchisees.

For a prospective Bevaris Alliance franchisee, understanding this definition is crucial for assessing the potential impact of post-termination restrictions on their future business activities. If a franchisee builds a substantial customer base during the term of the agreement, these restrictions could limit their ability to continue serving those customers should they leave the Bevaris Alliance system. Franchisees should seek clarification on the scope and enforceability of these restrictions to fully understand their obligations and potential limitations.