What is the Bevaris Alliance franchisee required to do with the System upon termination or expiration?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
7.3, clause 27.9, clause 27.13, clause 27.14, and clause 27.15 shall continue in force for a period of twenty four (24) months and subject to this clause 19, the parties shall have no further obligations under this agreement.
- 19.2 Accrued rights. Any termination or expiration of this agreement shall not affect any rights or liabilities that have accrued prior to such termination.
- 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;
- (f) transfer all Customer lists and full details of contracts with Customers to the Franchisor, and if required by the Franchisor transfer all uncompleted contracts or unfulfilled orders to the Franchisor or its nominee;
- (g) cease to use the Franchise Software and other software supplied to the Franchisee by the Franchisor, and return or at the Franchisor's option, destroy, (without copying) all elements of it, including all software, data, hardware and documentation relating to it;
- (h) return or at the option of the Franchisor, destroy, all copies of the Manual, and other Products or materials bearing any of the Trademarks;
- (i) pay all debts owing to creditors of the Franchisee's Business, and irrevocably permit the Franchisor to deduct from all sums payable by the Franchisor to the Franchisee all sums which the Franchisor pays (whether legally obliged to or not) pursuant to this clause;
- (j) cease to use the Communications Addresses and not make or receive any telephone calls, faxes or emails in connection with the Branded Business, and take all steps that the Franchisor requires to transfer all listings of the Communications Addresses in any directory or other published materials to the Franchisor or as it may direct;
- (k) assign to the Franchisor all domain name registrations and rights in website content owned or used by the Franchisee in the Franchisee's 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 operating the Bevaris Alliance business and System, and they must stop trading under any of the trademarks. The franchisee cannot present themselves as a Bevaris Alliance franchisee or suggest any existing relationship with Bevaris Alliance. They are also prohibited from making or receiving telephone calls related to the branded business. The franchisee must also stop using the intellectual property, including the trademarks associated with Bevaris Alliance.
Additionally, the franchisee is required to pass all inquiries made after termination and full details of potential customers to Bevaris Alliance. They must transfer all customer lists and details of contracts with customers to Bevaris Alliance. If required by Bevaris Alliance, the franchisee must transfer all uncompleted contracts or unfulfilled orders to Bevaris Alliance or its nominee. The franchisee must also stop using the franchise software and other software provided by Bevaris Alliance, returning or destroying all elements of it, including software, data, hardware, and documentation, without making copies.
The franchisee must return or destroy all copies of the manual and other products or materials bearing any of the trademarks. They are obligated to pay all debts owed to creditors of the franchisee's business and allow Bevaris Alliance to deduct from any sums payable to the franchisee all sums Bevaris Alliance pays. The franchisee must stop using the communications addresses and not make or receive any calls, faxes, or emails related to the branded business. They must take steps to transfer all listings of the communications addresses in any directory or published materials to Bevaris Alliance.
Furthermore, the franchisee must assign to Bevaris Alliance all domain name registrations and rights in website content owned or used in the franchisee's business. They must deliver up any mobile telephone SIM cards or other communications equipment used in the franchisee's business. The franchisee is also required to take all other steps and execute and deliver to Bevaris Alliance all documents necessary to comply with obligations under specific clauses of the agreement and enable Bevaris Alliance to enter the franchisee's premises and gain access to systems and data to verify compliance with these termination obligations.