What is the Bevaris Alliance franchisee's obligation regarding loaned or hired equipment upon termination?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
- 19.5 Return of loaned and hired equipment. On termination or expiration of this agreement for any reason, the Franchisee must return (at its expense and in good working order and condition) all items of equipment held on loan or hire from the
Franchisor under the terms of this agreement. Until they have been returned or repossessed, the Franchisee shall be solely responsible for the safe keeping, supervision, custody and insurance of them.
19.6 Right of entry. If the Franchisee fails to fulfil its obligations under this clause 19 within a reasonable time, the Franchisor may, at the expense of the Franchisee, immediately and without notice, enter onto the Franchisee's premises and take such steps as it thinks fit to fulfil any outstanding obligations.
Source: Item 23 — RECEIPT (FDD pages 22–88)
What This Means (2024 FDD)
According to Bevaris Alliance's 2024 Franchise Disclosure Document, upon termination or expiration of the franchise agreement for any reason, the franchisee is obligated to return all equipment that was either loaned or hired from Bevaris Alliance. This equipment must be returned at the franchisee's own expense and must be in good working order and condition.
The franchisee remains responsible for the safe keeping, supervision, custody, and insurance of the loaned or hired equipment until it is either returned to Bevaris Alliance or repossessed by them. This means that even after the franchise agreement ends, the franchisee has a continuing duty to protect the equipment from damage, loss, or theft, and to maintain adequate insurance coverage.
If the franchisee fails to meet these obligations within a reasonable time, Bevaris Alliance has the right to enter the franchisee's premises without notice and take the necessary steps to recover the equipment. The franchisee will be responsible for covering any expenses Bevaris Alliance incurs during this process.