What is the initial term length for a Bevaris Alliance franchise agreement?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
- 3.1 Initial Term. The Initial Term of the agreement is 5 years from the Commencement Date subject to earlier termination in accordance with clause 18.
- 3.2 Renewed Term. The Franchisee may, by notice in writing to the Franchisor, given not less than 6 months before and not more than 8 months before the end of the Initial Term, request the term of this agreement to be renewed for a period of 5 years after the end of the Initial Term. The Franchisor shall, by notice in writing to the Franchisee, given not less than 4 months before the end of the Initial Term, accept a renewal of the term of this agreement, if:
- (a) the Franchisee has paid or will pay on or before entering into the successor franchise agreement (in accordance with clause 4) a Renewal Fee of ten percent (10%) the Franchisor's then current Initial Fee;
- (b) at the end of the Initial Term, there are no outstanding material breaches by the Franchisee or the Individual of this agreement, and there are no grounds on which the Franchisor has a right to terminate this agreement under clause 18;
Source: Item 23 — RECEIPT (FDD pages 22–88)
What This Means (2024 FDD)
According to the 2024 Bevaris Alliance Franchise Disclosure Document, the initial term of the franchise agreement is 5 years from the commencement date. However, this is subject to earlier termination in accordance with clause 18 of the agreement.
Bevaris Alliance offers franchisees the option to renew their franchise agreement for an additional 5 years. To renew, the franchisee must provide written notice to Bevaris Alliance between 6 and 8 months before the end of the initial term.
Bevaris Alliance will then notify the franchisee in writing at least 4 months before the end of the initial term if the renewal is accepted. The franchisee must pay a renewal fee of 10% of the then-current initial franchise fee and must not be in material breach of the agreement at the end of the initial term to be eligible for renewal.