What happens if a Bevaris Alliance franchisee does not start business by the Commencement Date?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
7.1 The Franchisee shall start business on the Commencement Date and, at all times during the Term, in relation to the Franchisee's Business, comply with the obligations set out in this clause 7.
Source: Item 23 — RECEIPT (FDD pages 22–88)
What This Means (2024 FDD)
According to the 2024 Bevaris Alliance Franchise Disclosure Document, franchisees are obligated to start their business on the Commencement Date, as stated in clause 7.1. However, the document does not explicitly detail the consequences if a franchisee fails to meet this obligation.
Item 18.1 outlines conditions under which Bevaris Alliance may terminate the franchise agreement, including failure to pay amounts due or committing a material breach of the agreement. While not starting the business on the Commencement Date could potentially be considered a material breach, the FDD does not directly state this.
Prospective Bevaris Alliance franchisees should seek clarification from the franchisor regarding the specific repercussions of not starting their business by the Commencement Date. Understanding the potential penalties or remedies available to the franchisor in such a situation is crucial for making an informed investment decision.