What is the dispute resolution process for disagreements between Bevaris Alliance and its franchisees?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
| Document download | |||
|---|---|---|---|
| Section in Franchise | |||
| Pr | ovision | Agreement | Summary which must be approved by us. |
| 1. | Bevaris approval of transfer | Section | We have the right to approve all transfers, which shall be |
| by franchisee | 16.11 | subject to the provisions of the Franchise Agreement. | |
| m. | Conditions for Bevaris | Section | Transferee approved by us, transfer fee paid, transferee |
| approval of transfer | 16.11 | not competitor, your account is current, you sign a release, transferee signs all documents, lender consents, and subordination agreements. | |
| n. | Bevaris' right of first refusal to acquire franchisee's business | Section 16.3 | Bevaris can match any offer for the purchase of Your franchise at Bevaris' option. |
| 0. | Bevaris' option to purchase Your business | Section 16.7 | Upon transfer, fair market value (but no value for goodwill), legal compliance, no assumption of your liabilities. |
| p. | Death or disability of franchisee | Section 17 | Franchise may be assigned by estate to approve transferee in three months. |
| q. | Non-competition covenants during the term of the franchise | Section 20.1 | You are prohibited from operating or having an interest in a similar business. |
| r. | Non-competition covenants after the franchise is terminated or expires | Section 20.1 | You are prohibited for 24 months from expiration or termination of the franchise from having a connection with a competing business. |
| s. | Modification of the | Not | No modifications generally, but the Bevaris Alliance |
| agreement | Applicable. | Manual is subject to change. Renewal or extension may subject franchisee to additional restrictions. | |
| t. | Integration/merger clause | Section 27.4 | Only the terms of the Franchise Agreement are binding. Any other oral or written promises are not enforceable; including anything set forth in this Disclosure Document. |
| u. | Dispute resolution by arbitration or mediation | Section 24 | If the parties have a dispute, the parties shall agree on the appointment of an expert, who shall issue a written decision and give notice of the decision to the parties within 90 days of the matter being referred to the expert. The expert's decision shall be final and binding on the parties. |
| v. | Choice of forum | Section 27.15 | In California. |
| w. | Choice of law | Section 27.14 | California law applies. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 17–18)
What This Means (2024 FDD)
According to Bevaris Alliance's 2024 Franchise Disclosure Document, Section 24 of the Franchise Agreement outlines the dispute resolution process. If a dispute arises between Bevaris Alliance and a franchisee, both parties are required to agree on the appointment of an expert. This expert will then review the matter and issue a written decision, providing notice of the decision to both parties within 90 days of the referral.
The expert's decision is considered final and binding, meaning both Bevaris Alliance and the franchisee must adhere to the outcome. This process bypasses traditional litigation or arbitration, opting instead for a quicker resolution through an agreed-upon expert. This approach aims to provide a more efficient and less costly means of resolving disputes.
It is important to note that the choice of forum for any legal actions is California, and California law governs the Franchise Agreement. Prospective franchisees should carefully consider the implications of this dispute resolution process, including the selection and cost of the expert, and the binding nature of their decision. Franchisees should seek legal counsel to fully understand their rights and obligations under the Franchise Agreement.