What happens to the Bevaris Alliance franchisee's business operation upon termination or expiration of the agreement?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
- 19.3 Cessation of business. On termination or expiration of this agreement for any reason, the Franchisee and the Individual shall:
- (a) immediately pay the Franchisor the full amount of all sums due from the Franchisee to the Franchisor together with any interest payable in accordance with clause 25.2;
- (b) cease to operate the Franchisee's Business and System and cease to trade under any of the Trademarks, and not hold the Franchisee out as a franchisee of the Franchisor or do anything that may indicate any relationship between them and the Franchisor;
- (c) not make or receive telephone calls in connection with the Branded Business;
- (d) immediately stop using the Intellectual Property, including the Trademarks;
- (e) pass all enquiries made after termination, and full details of potential Customers, to the Franchisor;
Source: Item 23 — RECEIPT (FDD pages 22–88)
What This Means (2024 FDD)
According to the 2024 Bevaris Alliance Franchise Disclosure Document, several actions are required of the franchisee upon termination or expiration of the franchise agreement. The franchisee must immediately pay Bevaris Alliance all outstanding sums due, including any interest. They must also cease operating the Bevaris Alliance business and system, stop trading under any of the Bevaris Alliance trademarks, and refrain from presenting themselves as a franchisee of Bevaris Alliance or implying any ongoing relationship.
Additionally, the franchisee is prohibited from making or receiving telephone calls related to the Branded Business and must immediately discontinue all use of Bevaris Alliance's intellectual property, including trademarks. All inquiries received after termination, along with complete details of potential customers, must be passed on to Bevaris Alliance.
These stipulations ensure a clean break between the franchisee and Bevaris Alliance, protecting Bevaris Alliance's brand and customer relationships. It is common practice in franchising to have such clauses to prevent confusion and maintain brand consistency after a franchise agreement ends. The franchisee should be aware of these post-termination obligations and plan accordingly.