How are disputes resolved according to the Bevaris Alliance Franchise Agreement?
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, dispute resolution is addressed in Section 24 of the Franchise Agreement. If a dispute arises between the parties, they are required to agree on the appointment of an expert. This expert will then issue a written decision and notify both parties within 90 days of the matter being referred to them. The expert's decision is considered final and binding for both Bevaris Alliance and the franchisee.
This method of dispute resolution, utilizing an expert whose decision is binding, is a form of alternative dispute resolution (ADR). While some franchise agreements may favor mediation or arbitration, Bevaris Alliance opts for expert determination, which can be quicker and more decisive than other ADR methods. However, franchisees should be aware that the expert's decision is final, limiting further recourse.
The Franchise Agreement also specifies that California law governs the agreement, and the choice of forum for any legal actions is in California, as detailed in Sections 27.14 and 27.15. This means that any dispute resolution, even through an expert, will be interpreted under California law, and any legal proceedings would take place in California. This could present additional costs and logistical challenges for franchisees located outside of California.
Prospective franchisees should carefully review Section 24 of the Franchise Agreement to fully understand the implications of this dispute resolution process. They should also consider seeking legal counsel to assess the potential impact of the choice of law and forum provisions, especially if they are not located in California. Understanding these aspects is crucial before entering into a franchise agreement with Bevaris Alliance.