Does the employee non-enticement clause in the Bevaris Alliance agreement apply during the term of the 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 R
Source: Item 23 — RECEIPT (FDD pages 22–88)
What This Means (2024 FDD)
According to the 2024 Bevaris Alliance Franchise Disclosure Document, the employee non-enticement clause is in effect during the term of the franchise agreement. Specifically, the franchisee and the individual involved in the franchise operation are prohibited from offering employment to or enticing away any employee of Bevaris Alliance or any other Bevaris Alliance franchisee. This restriction applies to employees who could materially damage the interests of Bevaris Alliance or its franchisees and with whom the franchisee or individual dealt in the 24 months prior to the termination of the agreement.
This restriction is designed to protect Bevaris Alliance's confidential information, trade secrets, and business connections, as well as those of its franchisees. The non-enticement clause aims to prevent franchisees from poaching valuable employees who possess critical knowledge or skills that could harm the Bevaris Alliance system if they were to work for a competitor. The clause also extends for 24 months after the termination or expiration of the franchise agreement, providing continued protection to Bevaris Alliance and its franchisees even after a franchise relationship ends.
For a prospective Bevaris Alliance franchisee, this means that during the term of their agreement and for two years afterward, they cannot actively recruit or hire employees from Bevaris Alliance or other franchisees within the system. This restriction is in place to maintain stability within the Bevaris Alliance network and prevent unfair competition among franchisees. Franchisees must be mindful of this clause when considering hiring practices, particularly if they are acquainted with employees of Bevaris Alliance or other franchisees.
It is important to note that this restriction applies only to employees who could materially damage the interests of Bevaris Alliance or its franchisees and with whom the franchisee or individual dealt in the 24 months prior to termination. This suggests that there may be some flexibility in hiring employees who do not meet these criteria. However, franchisees should exercise caution and seek clarification from Bevaris Alliance if they are unsure whether a potential hire would violate the non-enticement clause.