What is the duration of the non-solicitation period for Restricted Customers after termination of a Bevaris Alliance franchise agreement?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
keeping, supervision, custody and insurance of them.
19.6 Right of entry. If the Franchisee fails to fulfil its obligations under this clause 19 within a reasonable time, the Franchisor may, at the expense of the Franchisee, immediately and without notice, enter onto the Franchisee's premises and take such steps as it thinks fit to fulfil any outstanding obligations.
20. Restrictions
- 20.1 In order to protect the Confidential Information, trade secrets and business connections of the Franchisor and the Franchisor's other franchisees, the Franchisee and the Individual covenant with the Franchisor that they shall not:
- (a) during the Term or for 24 months after termination or expiration of this agreement, solicit or endeavor to entice away from the Franchisor or any other franchisee of the Franchisor the business or custom of a Restricted Customer with a view to providing goods or services to that Restricted Customer in competition with any Restricted Busine
Source: Item 23 — RECEIPT (FDD pages 22–88)
What This Means (2024 FDD)
According to the 2024 Bevaris Alliance Franchise Disclosure Document, franchisees are restricted from soliciting or enticing away the business or custom of a Restricted Customer after the termination or expiration of the franchise agreement. This restriction is in place to protect the confidential information, trade secrets, and business connections of Bevaris Alliance and its other franchisees.
The non-solicitation period lasts for 24 months following the termination or expiration of the agreement. During this time, franchisees cannot solicit or attempt to attract Restricted Customers to a competing business with the intention of providing goods or services that compete with any Restricted Business. This restriction applies to both the franchisee and any individual associated with the franchisee.
This restriction does not prevent a franchisee from holding an investment of not more than 5% of the total issued share capital of any company, regardless of whether it is listed on a stock exchange. This exception allows franchisees to make minor investments without violating the non-solicitation agreement. The restrictions are designed to protect Bevaris Alliance's business interests while allowing former franchisees limited freedom to pursue other opportunities.
It is important for prospective franchisees to understand the scope and limitations of these restrictions before entering into a franchise agreement with Bevaris Alliance. Understanding these terms can help franchisees avoid potential legal issues after the termination or expiration of their franchise agreement.