Can a Bevaris Alliance franchise be renewed if there are outstanding material breaches by the franchisee?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
- (c) the Franchisee and Individual have at all times performed their obligations under this agreement, including but not limited to any training obligations under clause 9 of this agreement, to the reasonable satisfaction of the Franchisor and the Franchisee's Business meets the Franchisor's requirements as set out in the Franchisor's then current form of franchise agreement and Manual;
- (d) The Franchisee has executed a general release in favor of Franchisor.
- 3.3 Agreement for Renewed Term. Any renewal under this clause 3 shall be effected either by confirmation in writing signed by or on behalf of the parties or, if required by the Franchisor, by the parties entering into a new agreement, which shall be in the Franchisor's then current form of franchise agreement, provided that, on such renewal:
- (a) the Franchisee will not be liable to pay the Initial Fee (or the equivalent of it) under the new agreement;
- (b) the Franchisor will not be under any obligation to perform the obligations under clause 5 or any equivalent obligations under the new agreement; and
- (c) the provisions of clause 3.2 and clause 3.3, or any equivalent provisions under the new agreement, shall not apply in the Renewed Term.
- 3.4 No waiver. Unless the parties agree otherwise in writing, any renewal under this clause 3 shall be without prejudice to any rights or obligations of the parties outstanding at the end of the Initial Term. The Franchisee and the Individual shall waive all claims that it or they may have against the Franchisor arising in respect of this agreement.
- 3.5 Termination on expiration of Term. Unless it is terminated earlier under clause 18, this agreement shall terminate and expire at the end of the Term.
- 3.6 No Express agreement on Renewed Term. If the Franchisee continues to carry on the Franchisee's Business after the end of the Term, but without having agreed to a Renewed Term with the Franchisor, then it will be deemed to do so on the terms and conditions of this agreement (or any agreement entered into by the parties under clause 3.3), except that any party will be entitled to terminate this agreement on giving to the others 30 days written notice of termination.
Source: Item 23 — RECEIPT (FDD pages 22–88)
What This Means (2024 FDD)
According to the 2024 Bevaris Alliance Franchise Disclosure Document, for a franchise agreement to be renewed, the franchisee and the individual involved must have consistently fulfilled their obligations under the agreement. This includes meeting all training requirements outlined in clause 9 of the agreement to the franchisor's satisfaction. Additionally, the franchisee's business must meet the franchisor's standards as detailed in the current franchise agreement and manual.
As part of the renewal process, the franchisee is required to execute a general release in favor of Bevaris Alliance. The renewal can be formalized through a written confirmation signed by both parties or, if Bevaris Alliance requires, by entering into a new agreement based on the franchisor's current franchise agreement.
If a new agreement is required, the franchisee will not have to pay an initial fee, and Bevaris Alliance will not be obligated to fulfill the obligations outlined in clause 5 or any equivalent obligations in the new agreement. Any renewal will not affect the rights or obligations of either party that are outstanding at the end of the initial term, unless otherwise agreed in writing. The franchisee and the individual involved must also waive any claims against Bevaris Alliance related to the agreement.
If the franchisee continues to operate the business after the term expires without a formal renewal agreement, it will be considered as operating under the terms of the original agreement. However, either party can terminate the agreement with 30 days' written notice.