What is the Bevaris Alliance franchisee prohibited from doing that may indicate a relationship with the franchisor after termination?
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:
- (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;
Source: Item 23 — RECEIPT (FDD pages 22–88)
What This Means (2024 FDD)
According to the 2024 Bevaris Alliance Franchise Disclosure Document, upon termination or expiration of the franchise agreement, the franchisee must cease all operations related to the Bevaris Alliance system. Specifically, the franchisee is prohibited from actions that might suggest an ongoing relationship with Bevaris Alliance.
This includes an explicit prohibition against representing themselves as a franchisee of Bevaris Alliance or engaging in any activity that could imply a connection between the franchisee's business and Bevaris Alliance. The franchisee must also cease trading under any of the Bevaris Alliance trademarks. Additionally, the franchisee is barred from making or receiving telephone calls related to the Branded Business.
These restrictions are designed to protect Bevaris Alliance's brand integrity and prevent any confusion among customers regarding the franchisee's affiliation with the franchise after the agreement ends. By enforcing these measures, Bevaris Alliance aims to ensure a clear separation between the terminated franchisee and the ongoing operations of the franchise system. This is a fairly standard practice in franchising, as franchisors typically want to avoid any potential damage to their brand or reputation that could arise from a former franchisee's actions.