When must the Bevaris Alliance franchisee pay the Renewal Fee?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
- 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. The Franchisor shall, by notice in writing to the Franchisee, given not less than 4 months before the end of the Initial Term, accept a renewal of the term of this agreement, if:
- (a) the Franchisee has paid or will pay on or before entering into the successor franchise agreement (in accordance with clause 4) a Renewal Fee of ten percent (10%) the Franchisor's then current Initial Fee;
- (b) at the end of the Initial Term, there are no outstanding material breaches by the Franchisee or the Individual of this agreement, and there are no grounds on which the Franchisor has a right to terminate this agreement under clause 18;
Source: Item 23 — RECEIPT (FDD pages 22–88)
What This Means (2024 FDD)
According to the 2024 Bevaris Alliance Franchise Disclosure Document, a franchisee who wishes to renew their franchise agreement for an additional term of 5 years must pay a Renewal Fee. The franchisee must provide written notice to Bevaris Alliance between 6 and 8 months before the end of the initial 5-year term, requesting a renewal.
Bevaris Alliance must then provide written notice to the franchisee at least 4 months before the end of the initial term, either accepting or denying the renewal request. Payment of the Renewal Fee is contingent upon entering into a successor franchise agreement. The Renewal Fee is equal to ten percent (10%) of Bevaris Alliance's then-current Initial Fee.
In addition to paying the renewal fee, the franchisee must not be in material breach of the franchise agreement at the end of the initial term. There also cannot be any grounds upon which Bevaris Alliance would have the right to terminate the agreement under clause 18.