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

According to the 2024 Bevaris Alliance Franchise Disclosure Document, a 'Restricted Customer' is defined 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, which may prevent a franchisee from soliciting or conducting business with these customers for a certain period after the franchise agreement ends.

This definition protects Bevaris Alliance franchisees by clearly outlining who is considered a customer of the franchisee's business. This distinction is important because it affects the franchisee's ability to operate independently after the franchise agreement expires or is terminated. The 12-month look-back period provides a defined timeframe for determining customer relationships, reducing potential disputes.

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. It is important to note that this definition is specifically used in the context of 'Restricted Customer,' implying that there are restrictions on engaging with these customers post-termination. Franchisees should carefully review the franchise agreement to fully understand the scope and duration of these restrictions and how they might affect their ability to continue serving their established customer base if they leave the Bevaris Alliance system.