What is the Bevaris Alliance Franchisee obligated to do when a manager is appointed due to death or incapacity?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
- 17.2 Appointment of manager on death or incapacity of Individual. In the event of the death of the Individual or if the Individual is, in the reasonable opinion of the Franchisor, unable to a material degree to operate the Franchisee's Business to the standard required by the Manual for a period in excess of 60 days in any 90 day period, the Franchisor may appoint a manager of the Franchisee's Business who shall have full powers to operate the Franchisee's Business and to take all steps to ensure that the Franchisee complies with the terms of this agreement at the expense of the Franchisee.
Source: Item 23 — RECEIPT (FDD pages 22–88)
What This Means (2024 FDD)
According to the 2024 Bevaris Alliance Franchise Disclosure Document, in the event of the death or incapacity of the individual franchisee, Bevaris Alliance has the right to appoint a manager to oversee the franchisee's business operations. This manager will possess the authority to run the business and ensure compliance with the franchise agreement and operational standards outlined in the manual.
The key obligation for the franchisee, or their estate in the event of death, is to bear the expense of this manager. This means that the franchisee will be responsible for covering the costs associated with the manager's salary, benefits, and any other expenses incurred while managing the Bevaris Alliance franchise.
This provision protects Bevaris Alliance by ensuring the continued operation of the franchise according to its standards, even when the original franchisee is unable to manage the business. For a prospective franchisee, this highlights the importance of having contingency plans in place, such as key person insurance or a succession plan, to address potential management gaps due to unforeseen circumstances. The franchisee should clarify with Bevaris Alliance the specific process for appointing a manager, the scope of the manager's authority, and how the manager's expenses will be determined and paid.