When does the Bevaris Alliance franchise agreement terminate if not terminated earlier?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
e 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
Source: Item 23 — RECEIPT (FDD pages 22–88)
What This Means (2024 FDD)
According to Bevaris Alliance's 2024 Franchise Disclosure Document, the franchise agreement has an initial term of 5 years from the commencement date. However, as stated in clause 3.5, unless terminated earlier under clause 18, the agreement will terminate and expire at the end of the term.
Bevaris Alliance offers franchisees the option to renew the agreement for an additional 5-year term. To renew, the franchisee must provide written notice to Bevaris Alliance between 6 and 8 months before the end of the initial term. Bevaris Alliance must then accept the renewal in writing at least 4 months before the end of the initial term.
Several conditions must be met for renewal to be granted. The franchisee must pay a renewal fee of 10% of the then-current initial franchise fee and must not be in material breach of the agreement. Additionally, the franchisee and individual involved must have consistently fulfilled their obligations under the agreement to Bevaris Alliance's satisfaction, and the franchisee's business must meet Bevaris Alliance's requirements as outlined in the current franchise agreement and manual. The franchisee must also execute a general release in favor of Bevaris Alliance.