If the Bevaris Alliance franchisee is in noncompliance with clause 7, is the Noncompliance Fee mandatory?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
- 4.18 Noncompliance Fee: In the event the Franchisee is in noncompliance with clause 7, Franchisor, may, in its sole discretion, assess Franchisee the Noncompliance Fee.
Noncompliance Fee: a $100.00 fee to be assessed to Franchisee per occurrence for failing to comply with clause 7.
Source: Item 23 — RECEIPT (FDD pages 22–88)
What This Means (2024 FDD)
According to Bevaris Alliance's 2024 Franchise Disclosure Document, the Noncompliance Fee is not mandatory. The document states that if a franchisee fails to comply with clause 7 of the franchise agreement, Bevaris Alliance has the discretion to assess a Noncompliance Fee.
The Noncompliance Fee is $100.00 per occurrence. This means that if a franchisee violates clause 7 multiple times, they could be assessed this fee for each instance of noncompliance. However, the key point is that Bevaris Alliance is not obligated to impose this fee; they "may" choose to do so.
This discretionary aspect provides Bevaris Alliance with flexibility in addressing noncompliance. They might choose to waive the fee for minor or unintentional violations, while imposing it for more serious or repeated offenses. For a prospective franchisee, this means that while noncompliance can result in a fee, there may be room for discussion or leniency depending on the specific circumstances. It would be prudent for a potential franchisee to understand the details of clause 7 and discuss with Bevaris Alliance what constitutes noncompliance and under what conditions the fee is typically applied.