What is the duration of the survival period for specific clauses after termination of the Bevaris Alliance agreement?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
- 19.1 Survival. On termination or expiration of this agreement for any reason:
- (a) Any provision of this agreement that expressly or by implication is intended to come into or continue in force on or after termination or expiration of this agreement, including clause 19, clause 20, clause 21, clause 22, clause 23, clause 24, clause 27.2, clause 27.3, clause 27.9, clause 27.13, clause 27.14, or clause 27.15 shall remain in full force and effect; and
- (b) Clause 19, clause 20, clause 21, clause 22, clause 23, clause 24, clause 27.2, clause 27.3, clause 27.9, clause 27.13, clause 27.14, and clause 27.15 shall continue in force for a period of twenty four (24) months and subject to this clause 19, the parties shall have no further obligations under this agreement.
Source: Item 23 — RECEIPT (FDD pages 22–88)
What This Means (2024 FDD)
According to the 2024 Bevaris Alliance Franchise Disclosure Document, certain clauses within the franchise agreement will remain in effect after the termination or expiration of the agreement. Specifically, clauses 19, 20, 21, 22, 23, 24, 27.2, 27.3, 27.9, 27.13, 27.14, and 27.15 will continue to be enforceable.
These clauses remain in force for a period of 24 months following the termination or expiration of the agreement. After this 24-month period, the parties involved will generally have no further obligations to each other under the agreement, subject to the specifics outlined in clause 19. This means that certain responsibilities and restrictions, such as those related to confidentiality, non-compete, or financial obligations, will persist for two years after the franchise relationship ends.
For a prospective Bevaris Alliance franchisee, this survival clause has significant implications. It means that even after the franchise agreement concludes, the franchisee must continue to adhere to certain terms, potentially impacting their ability to engage in similar business ventures or disclose confidential information. Franchisees should carefully review these clauses to understand the full scope of their post-termination obligations and how they might affect their future business activities. Understanding these long-term obligations is a crucial part of evaluating the overall franchise opportunity.