What is the latest time before the end of the initial term that a Bevaris Alliance franchisee can request a renewal?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
- 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, a franchisee must provide written notice to Bevaris Alliance no later than six months before the end of the initial franchise term to request a renewal. The initial term for a Bevaris Alliance franchise agreement is five years. The franchisee can request a renewal no sooner than eight months before the end of the initial term.
To renew the franchise agreement, the franchisee must meet certain conditions. These include paying a renewal fee equal to ten percent of the then-current initial franchise fee. Additionally, the franchisee must not be in material breach of the agreement at the end of the initial term, and there should be no grounds for Bevaris Alliance to terminate the agreement.
If the franchisee meets these conditions, Bevaris Alliance will notify the franchisee in writing at least four months before the end of the initial term, accepting the renewal. The renewal term will be for an additional five years. This clause ensures that both the franchisee and Bevaris Alliance have adequate time to prepare for the continuation of the business relationship.