Must the Bevaris Alliance franchisor provide a notice period before terminating the agreement for cause?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
- 18.1 Termination for cause by Franchisor. The Franchisor may terminate this agreement with immediate effect (or following such notice period as it sees fit) without prejudice to any of its rights or remedies, by giving written notice to the Franchisee and the Individual if:
- (a) the Franchisee or Individual fails to pay any amount due under this agreement on the due date for payment and remains in default not less than 7 (seven) days after being notified in writing to make such payment; or
- (b) the Franchisee or Individual commits a material breach of any term of this agreement (other than failure to pay any amounts due under this agreement), the Manual, or any other written agreement between the Franchisor and Franchisee or involving the Franchisee though Franchisee is not a party to such other written agreement (such as a Food Service Agreement) and (if such breach is remediable) fails to remedy that breach (or adequately assist Franchisor in the remedy of a Food Service Agreement) within a period of 14 (fourteen) days after being notified in writing to do so; or
- (c) the Individual or the Franchisee's employees fail to successfully complete the initial training referred to in clause 9; or
- (d) the Franchisee does not start business by the Commencement Date; or
- (e) the Franchisee or Individual repeatedly breaches any of the terms of this agreement in such a manner as to reasonably justify the opinion that its or
Source: Item 23 — RECEIPT (FDD pages 22–88)
What This Means (2024 FDD)
According to Bevaris Alliance's 2024 Franchise Disclosure Document, Bevaris Alliance may terminate the franchise agreement with immediate effect or following a notice period that Bevaris Alliance deems appropriate. This is without prejudice to any of its rights or remedies. Bevaris Alliance will provide written notice to the franchisee and the individual in certain circumstances.
Specifically, if the franchisee or individual fails to pay any amount due under the agreement and remains in default for at least 7 days after written notification, Bevaris Alliance can terminate the agreement. Additionally, if the franchisee or individual materially breaches any term of the agreement, the manual, or any other written agreement and fails to remedy the breach within 14 days after written notification (if the breach is remediable), Bevaris Alliance can terminate the agreement.
Other causes for termination include the failure of the individual or the franchisee's employees to successfully complete initial training, the franchisee not starting the business by the commencement date, repeated breaches of the agreement terms, providing false or misleading information to Bevaris Alliance, and persistent valid complaints about the quality of service provided by the franchisee. These stipulations outline the conditions under which Bevaris Alliance can terminate the agreement, emphasizing the importance of adhering to the agreement's terms and maintaining service quality.