What is the length of the renewed term for a Bevaris Alliance franchise agreement?
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 Bevaris Alliance's 2024 Franchise Disclosure Document, the renewed term for a franchise agreement is five years. Specifically, the franchisee has the option to request a renewal by providing written notice to Bevaris Alliance not less than six months, but also not more than eight months, before the end of the initial term.
However, Bevaris Alliance is not obligated to grant the renewal. The document states that Bevaris Alliance will provide written notice to the franchisee no less than four months before the end of the initial term, indicating whether they accept the renewal request.
To be eligible for renewal, the franchisee must meet certain conditions. These include paying a renewal fee equal to ten percent of the then-current initial franchise fee, resolving any outstanding material breaches of the agreement, consistently fulfilling all obligations under the agreement (including training), ensuring the business meets Bevaris Alliance's standards, and executing a general release in favor of Bevaris Alliance.