Does the Bevaris Alliance franchisor have to provide a specific notice period before termination 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
Source: Item 23 — RECEIPT (FDD pages 22–88)
What This Means (2024 FDD)
According to the 2024 Bevaris Alliance Franchise Disclosure Document, Bevaris Alliance has the right to terminate the franchise agreement with immediate effect, or following a notice period that Bevaris Alliance deems appropriate, without affecting any other rights or remedies available to them. This is enacted by providing written notice to both the franchisee and the individual involved.
However, there are exceptions. If the termination is due to the franchisee or individual failing to pay amounts due, Bevaris Alliance must provide a written notice and allow at least seven days for the payment to be made before termination. In the event of a material breach of the agreement, manual, or any other written agreement, the franchisee has 14 days after written notification to remedy the breach.
This means that while Bevaris Alliance retains considerable flexibility in determining the notice period for termination, franchisees do have some protection in the form of cure periods for specific breaches, allowing them an opportunity to rectify the issue and maintain their franchise agreement.