If a Bevaris Alliance franchisee renews or extends their agreement, may they be subject to additional restrictions?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
| Document download | |||
|---|---|---|---|
| Section in Franchise | |||
| Pr | ovision | Agreement | Summary which must be approved by us. |
| 1. | Bevaris approval of transfer | Section | We have the right to approve all transfers, which shall be |
| by franchisee | 16.11 | subject to the provisions of the Franchise Agreement. | |
| m. | Conditions for Bevaris | Section | Transferee approved by us, transfer fee paid, transferee |
| approval of transfer | 16.11 | not competitor, your account is current, you sign a release, transferee signs all documents, lender consents, and subordination agreements. | |
| n. | Bevaris' right of first refusal to acquire franchisee's business | Section 16.3 | Bevaris can match any offer for the purchase of Your franchise at Bevaris' option. |
| 0. | Bevaris' option to purchase Your business | Section 16.7 | Upon transfer, fair market value (but no value for goodwill), legal compliance, no assumption of your liabilities. |
| p. | Death or disability of franchisee | Section 17 | Franchise may be assigned by estate to approve transferee in three months. |
| q. | Non-competition covenants during the term of the franchise | Section 20.1 | You are prohibited from operating or having an interest in a similar business. |
| r. | Non-competition covenants after the franchise is terminated or expires | Section 20.1 | You are prohibited for 24 months from expiration or termination of the franchise from having a connection with a competing business. |
| s. | Modification of the | Not | No modifications generally, but the Bevaris Alliance |
| agreement | Applicable. | Manual is subject to change. Renewal or extension may subject franchisee to additional restrictions. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 17–18)
What This Means (2024 FDD)
According to Bevaris Alliance's 2024 Franchise Disclosure Document, a renewal or extension of the franchise agreement may subject the franchisee to additional restrictions. This is a fairly standard clause in franchise agreements, as franchisors often update their systems, standards, and requirements over time. When a franchisee renews or extends their term, the franchisor wants to ensure that the franchisee is operating under the most current guidelines.
For a prospective Bevaris Alliance franchisee, this means that the terms of the renewal agreement could differ from the original agreement. These changes could involve new fees, updated operational standards, modifications to the territory, or other requirements that the franchisee must meet. It is important to carefully review the renewal agreement and understand any new obligations before signing.
Franchisees should pay close attention to any modifications to the Bevaris Alliance Manual, as these are subject to change and can impact the day-to-day operations of the franchise. Understanding the potential for additional restrictions during renewal or extension periods is crucial for long-term planning and financial forecasting. Franchisees should seek legal counsel to review the renewal agreement and ensure they fully understand the implications of any new restrictions.