Can the Bevaris Alliance franchisor terminate the agreement immediately 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
his or her conduct is inconsistent with having the intention or ability to give effect to the terms of this agreement; or
(f) the Franchisee or Individual gives to the Franchisor any false or misleading information, or makes any misrepresentation in connection with obtaining this agreement or during the Term, in connection with the Franchisee's Business; or
(g) persistent, valid complaints continue to be made to the Franchisor about the quality of the service provided by the Franchisee and the Franchisee, having received notice of such complaints, fails to improve such service to the reasonable satisfaction of the Franchisor; or
Source: Item 23 — RECEIPT (FDD pages 22–88)
What This Means (2024 FDD)
According to the 2024 Bevaris Alliance Franchise Disclosure Document, the franchisor, Bevaris Alliance Franchise System, LLC, can terminate the franchise agreement with immediate effect under certain conditions. These conditions include failure to pay amounts due, committing a material breach of the agreement, failure of the franchisee's employees to complete initial training, not starting the business by the commencement date, repeated breaches of the agreement, providing false or misleading information, or persistent valid complaints about the service quality.
Specifically, Bevaris Alliance can terminate the agreement if the franchisee fails to pay any amount due and remains in default for at least seven days after written notification. A material breach of the franchise agreement, manual, or any other written agreement involving the franchisee also allows for immediate termination if the breach is not remedied within 14 days after written notice, assuming the breach is remediable.
Additionally, Bevaris Alliance may terminate the agreement immediately if the franchisee gives false or misleading information to the franchisor or if persistent, valid complaints continue to be made about the quality of service provided by the franchisee, and the franchisee fails to improve such service to the reasonable satisfaction of the franchisor after receiving notice of such complaints. These termination rights are without prejudice to any other rights or remedies Bevaris Alliance may have.