Can the Bevaris Alliance franchisor designate mandatory third-party suppliers?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
7.10 Information technology. The Franchisee shall:
- (a) use the Franchise Software and do all such things as the Franchisor shall reasonably require (including the purchase or leasing of hardware and entering into applicable software licenses) to permit and/or facilitate the operation and use of the Franchise Software and contribute to all costs associated with the development and implementation of the Franchise Software for use in the Franchisee's Business such amount as shall in the Franchisor's reasonable opinion represent a fair contribution to such costs;
- (b) acquire, update, replace and/or make use of any software and hardware which the Franchisor shall reasonably require to be used for the Franchisee's Business in accordance with the instructions and timetable (subject to the Franchisee having not less than sixty days notification of the specification for the hardware) set by the Franchisor; and
- (c) immediately enter into or comply with such software licenses and other agreements (whether with the Franchisor or third-party suppliers) concerning the Franchise Software and other software required to enable the Franchisee to use the Franchise Software in accordance with the Manual and comply strictly with their terms.
Source: Item 23 — RECEIPT (FDD pages 22–88)
What This Means (2024 FDD)
According to the 2024 Bevaris Alliance Franchise Disclosure Document, Bevaris Alliance franchisees are required to use specific software and hardware that the franchisor reasonably requires for the business. The franchisee must acquire, update, or replace software and hardware according to the franchisor's instructions and timetable, with at least 60 days' notice of hardware specifications.
Furthermore, Bevaris Alliance franchisees must enter into and comply with software licenses and other agreements with both the franchisor and third-party suppliers. These agreements concern the Franchise Software and other software needed to use the Franchise Software, as outlined in the Manual.
Additionally, the FDD mentions "Approved Suppliers" in a table outlining various aspects of the franchise system. This suggests that Bevaris Alliance franchisees are required to purchase from suppliers approved by the franchisor. This is a common practice in franchising, allowing the franchisor to maintain quality control and consistency across all franchise locations.
In summary, Bevaris Alliance franchisees are obligated to use specific software and hardware and to comply with agreements with third-party suppliers as mandated by the franchisor. The FDD also references "Approved Suppliers", indicating that franchisees are likely required to purchase from a designated list of suppliers.