What is the Bevaris Alliance franchisee's obligation regarding ceasing to operate the Franchisee's Business and System upon termination?
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;
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 immediately cease operating the Bevaris Alliance Business and System. This includes stopping all business activities under the Bevaris Alliance trademarks and refraining from presenting themselves as a franchisee of Bevaris Alliance. The franchisee must also stop making or receiving telephone calls related to the branded business.
Additionally, the franchisee is required to immediately discontinue the use of Bevaris Alliance's intellectual property, including trademarks. All inquiries received after termination, along with complete details of potential customers, must be passed on to Bevaris Alliance. Customer lists and contract details must be transferred to Bevaris Alliance, and if required, all uncompleted contracts or unfulfilled orders must be transferred to Bevaris Alliance or its nominee.
The franchisee must also stop using the Franchise Software and other software provided by Bevaris Alliance, and either return or destroy all elements of it, including software, data, hardware, and documentation. All copies of the manual and other products or materials bearing any of the trademarks must be returned or destroyed. Furthermore, the franchisee must cease using the Communications Addresses and transfer all listings of the Communications Addresses in any directory or other published materials to Bevaris Alliance.
Finally, the franchisee must assign to Bevaris Alliance all domain name registrations and rights in website content used in the franchisee's business, deliver up any mobile telephone SIM cards or other communications equipment used in the franchisee's business, and enable Bevaris Alliance to enter the Franchisee's premises and gain access to the Franchisee's systems and data in order to verify compliance.