factual

Does the Bevaris Alliance franchise agreement specify the term length of the non-exclusive license?

Bevaris_Alliance Franchise · 2024 FDD

Answer from 2024 FDD Document

ose terms.

1.17 Any obligation in this agreement not to do something includes an obligation not to agree or allow that thing to be done.

2. Rights granted

  • 2.1 Non-Exclusive License to operate the Franchisee's Business. In consideration of the payments agreed to be made in clause 4, the Franchisor grants the Franchisee a non-exclusive license to:
    • (a) operate the Franchisee's Business;
    • (b) use the Intellectual Property in respect of the Franchisee's Business; and
    • (c) use the benefit of the Franchisor's operational knowledge and experience, in accordance with the System, during the Term and in accordance with the provisions of this agreement, the Manual, and the Food Service Agreements.
  • 2.2 No Exclusivity. The Franchisor may operate, make use of or license any person other than the Franchisee to operate the Branded Business under any of the Trademarks or the Trade Name in any area including the area in which the Franchisee operates the Franchisee's Business. The Franchisor without limiting the foregoing, may perform all Reserved Activities. The Franchisor may select any franchisee for performance of a Food Service Agreement. After a franchisee is selected for a particular Food Service Agreement, the Franchisor may replace the selected franchisee with another franchisee or itself provide the Products and Services directly under the Food Service Agreement.

3. Commencement Date and Term

  • 3.1 Initial Term. The Initial Term of the agreement is 5 years from the Commencement Date subject to earlier termination in accordance with clause 18.
  • 3.2 Renewed Term. The Franchisee may, by notice in writing to the Franchisor, given not less than 6 months before and not more than 8 months before the end of the Initial Term, request the term of this agreement to be renewed for a period of 5 years after the end of the Initial Term.

Source: Item 23 — RECEIPT (FDD pages 22–88)

What This Means (2024 FDD)

According to the 2024 Bevaris Alliance Franchise Disclosure Document, the franchise agreement grants a non-exclusive license to the franchisee. Specifically, in consideration of payments outlined in clause 4, Bevaris Alliance grants the franchisee a non-exclusive license to operate the Franchisee's Business, use the Intellectual Property, and benefit from the Franchisor's operational knowledge during the Term, in accordance with the agreement, the Manual, and the Food Service Agreements.

This non-exclusive license allows Bevaris Alliance to operate, utilize, or license others to operate the Branded Business under the Trademarks or Trade Name in any area, including the franchisee's operational area. Bevaris Alliance retains the right to perform all Reserved Activities and select any franchisee for Food Service Agreement performance. However, Bevaris Alliance can replace a selected franchisee with another or directly provide Products and Services under the Food Service Agreement.

The franchise agreement also addresses the commencement date and term, indicating that the duration of the non-exclusive license is tied to the overall term of the franchise agreement. The agreement terminates and expires at the end of the Term unless terminated earlier under clause 18. If the franchisee continues operating the Franchisee's Business after the Term without agreeing to a Renewed Term, it will be deemed to do so under the existing agreement's terms, but either party can terminate with 30 days' written notice.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.