For how long after the Bevaris Alliance agreement terminates are franchisees restricted from soliciting Restricted Customers?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
- 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 Customer with a view to providing goods or services to that Restricted Customer in competition with any Restricted Business; or
- (b) during the Term or for 24 months after termination or expiration of this agreement, in the course of any business concern which is in competition with or similar to the Branded Business or any business of the Franchisor or any Restricted Business, offer to employ or engage, or otherwise endeavor to entice away, any employee of the Franchisor or any other franchisee of the Franchisor who could materially damage the interests of the Franchisor or any other franchisee of the Franchisor, and with whom the Franchisee or the Individual dealt in the 24 months prior to termination of this agreement; or
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 in place to protect the confidential information, trade secrets, and business connections of Bevaris Alliance and its other franchisees. 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 for two years following the end of their franchise agreement, a former Bevaris Alliance franchisee cannot actively try to win back customers they served during their time as a franchisee. This restriction applies if the franchisee is trying to provide goods or services in competition with any Restricted Business, which is any business of Bevaris Alliance that is similar to the franchisee's business.
Such non-solicitation clauses are common in franchise agreements to protect the franchisor's customer base and prevent unfair competition from former franchisees who may have gained knowledge and relationships through the franchise system. The franchisee is also restricted for 24 months after termination or expiration of the agreement from offering employment to any employee of Bevaris Alliance or any other franchisee of Bevaris Alliance who could materially damage the interests of Bevaris Alliance or any other franchisee of Bevaris Alliance, and with whom the Franchisee or the Individual dealt in the 24 months prior to termination of this agreement.
It is important for prospective franchisees to understand the scope and duration of these restrictions before entering into a franchise agreement with Bevaris Alliance, as they could impact their ability to operate a similar business after leaving the franchise system.