If a Bevaris Alliance franchisee wants to modify the agreement, is this generally allowed?
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, the franchise agreement generally cannot be modified. The FDD states that no modifications are generally allowed. However, the Bevaris Alliance Manual is subject to change, which means that while the core agreement remains fixed, certain operational procedures or guidelines could be altered by Bevaris Alliance. Additionally, the FDD notes that renewal or extension of the franchise agreement may subject the franchisee to additional restrictions.
This aspect of the franchise agreement is fairly standard in the franchise industry, as franchisors typically want to maintain uniformity across all franchise locations. The inability to modify the agreement protects the brand's consistency and operational standards. However, the fact that the Bevaris Alliance Manual is subject to change means that franchisees need to stay updated on any revisions to operational procedures, as these changes will be binding.
Prospective franchisees should be aware that while they cannot negotiate the terms of the initial franchise agreement, the potential for changes in the Bevaris Alliance Manual means that the operational aspects of the business could evolve over time. Furthermore, franchisees should carefully consider the implications of any additional restrictions that may be imposed upon renewal or extension of the franchise agreement. It would be prudent for a potential franchisee to discuss with Bevaris Alliance what types of changes to the manual have occurred in the past and how those changes have affected franchisees.