If consent is required for a public announcement concerning the Bevaris Alliance agreement, can such consent be unreasonably withheld?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
- 27.11 Public Announcements. No party shall make, or permit any person to make, any public announcement concerning this agreement without the prior written consent of the other parties (such consent not to be unreasonably withheld or delayed), except as required by law, any governmental or regulatory authority (including any relevant securities exchange), any court or other authority of competent jurisdiction.
Source: Item 23 — RECEIPT (FDD pages 22–88)
What This Means (2024 FDD)
According to the 2024 Bevaris Alliance Franchise Disclosure Document, franchisees must obtain prior written consent from other parties before making any public announcement about the franchise agreement. However, this consent cannot be unreasonably withheld or delayed, except when announcements are required by law, governmental or regulatory authorities, securities exchanges, or courts with competent jurisdiction. This provision aims to balance Bevaris Alliance's control over its public image with the franchisee's need to communicate relevant information.
This clause protects the franchisee from arbitrary censorship by Bevaris Alliance. For example, if a franchisee wants to announce a successful local marketing campaign that has boosted sales, Bevaris Alliance cannot unreasonably prevent them from sharing this positive news. Similarly, if a franchisee is recognized with a local business award related to their Bevaris Alliance operations, the franchisor must have a legitimate reason to withhold consent for a public announcement.
However, the exception for legally required announcements is also important. If a franchisee is involved in a legal dispute that requires public disclosure, or if regulations mandate certain announcements, the franchisee is not bound by the consent requirement. This ensures compliance with legal and regulatory obligations, overriding the contractual need for franchisor approval in such cases.
Overall, this clause provides a reasonable framework for managing public communications related to the Bevaris Alliance franchise. It ensures that franchisees are not unduly restricted in their ability to communicate, while also allowing Bevaris Alliance to maintain control over its brand and public image.