What happens if the owner does not manage the Bevaris Alliance business for the first two years?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
Your owner or managing owner (if multiple owners and approved by us) will be required to attend and complete the initial training course. You will also be required to manage the business on a full-time day-to-day basis for at least the first two years of operations. After two years you may request that we approve the appointment of a designated manager (that has successfully completed the initial training program) that would operate the business on a full-time day-to-day basis. You still maintain the ultimate responsibility for overall management of your Bevaris business.
If you are granted the option to appoint a designated manager, you must appoint a designated manager that has successfully completed the initial training program provided by us.
In the event a designated manager is terminated or leaves your employment, you must step in and manage the day-to-day operation of the business until a replacement designated manager is hired, successfully completes the initial training program, and is otherwise approved by us.
The designated manager cannot have an interest or business relationship with any of our business competitors. The designated manager must sign a written agreement to maintain confidentiality of the trade secrets described in Item 14 and to conform with the covenants not to compete described in Item 17.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD page 16)
What This Means (2024 FDD)
According to the 2024 Bevaris Alliance Franchise Disclosure Document, the owner or managing owner is required to manage the business on a full-time, day-to-day basis for the first two years of operation. This requirement ensures that the owner is actively involved in establishing and running the Bevaris Alliance franchise during its critical initial phase.
After the initial two years, the owner may request approval from Bevaris Alliance to appoint a designated manager to handle the day-to-day operations. To be eligible, the designated manager must have successfully completed the initial training program provided by Bevaris Alliance. Even with a designated manager in place, the owner retains ultimate responsibility for the overall management of the Bevaris Alliance business.
If a designated manager is terminated or leaves employment, the owner must step back in to manage the day-to-day operations until a replacement is hired, trained, and approved by Bevaris Alliance. The designated manager cannot have any conflicting interests or business relationships with Bevaris Alliance's competitors and must maintain the confidentiality of trade secrets and adhere to non-compete covenants. The FDD does not state what happens if the owner does not manage the business for the first two years, but it is clearly a requirement of the franchise agreement.