For how long after the Bevaris Alliance agreement terminates are franchisees prohibited from soliciting Restricted Customers?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
keeping, supervision, custody and insurance of them.
19.6 Right of entry. If the Franchisee fails to fulfil its obligations under this clause 19 within a reasonable time, the Franchisor may, at the expense of the Franchisee, immediately and without notice, enter onto the Franchisee's premises and take such steps as it thinks fit to fulfil any outstanding obligations.
20. Restrictions
- 20.1 In order to protect the Confidential Information, trade secrets and business connections of the Franchisor and the Franchisor's other franchisees, the Franchisee and the Individual covenant with the Franchisor that they shall not:
- (a) during the Term or for 24 months after termination or expiration of this agreement, solicit or endeavor to entice away from the Franchisor or any other franchisee of the Franchisor the business or custom of a Restricted
Source: Item 23 — RECEIPT (FDD pages 22–88)
What This Means (2024 FDD)
According to the 2024 Bevaris Alliance Franchise Disclosure Document, franchisees are restricted from soliciting or enticing away the business or custom of a Restricted Customer for 24 months after the termination or expiration of the franchise agreement. This restriction is designed to protect the confidential information, trade secrets, and business connections of Bevaris Alliance and its other franchisees. The restriction applies if the franchisee intends to provide goods or services to that Restricted Customer in competition with any Restricted Business.
A "Restricted Customer" is defined as any firm, company, or person who, during the 12 months prior to the date of termination of the agreement, was a customer of or in the habit of dealing with the franchisee. This means that the non-solicitation clause extends to customers the franchisee had relationships with leading up to the termination date.
This type of restriction is common in franchising to protect the brand's customer base and prevent franchisees from leveraging the franchisor's goodwill to start a competing business immediately after leaving the system. Prospective Bevaris Alliance franchisees should carefully consider the implications of this restriction, especially if they anticipate wanting to operate a similar business in the same area after the franchise agreement ends. It is important to understand who qualifies as a "Restricted Customer" and how this might impact their future business opportunities.