Is a Bevaris Alliance franchisee allowed to trade under the trademarks after termination of the franchise agreement?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
- 19.3 Cessation of business. On termination or expiration of this agreement for any reason, the Franchisee and the Individual shall:
- (a) immediately pay the Franchisor the full amount of all sums due from the Franchisee to the Franchisor together with any interest payable in accordance with clause 25.2;
- (b) cease to operate the Franchisee's Business and System and cease to trade under any of the Trademarks, and not hold the Franchisee out as a franchisee of the Franchisor or do anything that may indicate any relationship between them and the Franchisor;
- (c) not make or receive telephone calls in connection with the Branded Business;
- (d) immediately stop using the Intellectual Property, including the Trademarks;
- (e) pass all enquiries made after termination, and full details of potential Customers, to the Franchisor;
Source: Item 23 — RECEIPT (FDD pages 22–88)
What This Means (2024 FDD)
According to the 2024 Bevaris Alliance Franchise Disclosure Document, a franchisee is not allowed to trade under the trademarks after the termination or expiration of the franchise agreement. Specifically, upon termination for any reason, the franchisee must cease operating the franchised business and system, and they must stop trading under any of the trademarks. They also cannot present themselves as a Bevaris Alliance franchisee or take any actions that might suggest a relationship with Bevaris Alliance.
This restriction is a standard practice in franchising. It protects the franchisor's brand and prevents former franchisees from potentially damaging the brand's reputation by operating independently without adhering to the franchisor's standards. This requirement ensures that the Bevaris Alliance brand remains consistent and under the control of the franchisor.
Furthermore, the franchisee must immediately cease using all intellectual property, including the trademarks, and forward any inquiries or potential customer details to Bevaris Alliance after termination. This ensures that the franchisor retains control over its brand and customer relationships, preventing any potential confusion or misuse of the Bevaris Alliance brand by the former franchisee.