How long is 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 the 2024 Bevaris Alliance Franchise Disclosure Document, the renewed term for a franchise agreement is five years. To renew the franchise agreement, the franchisee must provide written notice to Bevaris Alliance between six and eight months before the end of the initial term.
Bevaris Alliance will then notify the franchisee in writing at least four months before the end of the initial term if the renewal is accepted. Several conditions must be met for Bevaris Alliance to accept the renewal.
These conditions include paying a renewal fee equal to ten percent of the then-current initial franchise fee, ensuring there are no outstanding material breaches of the agreement, and fulfilling all obligations under the agreement, including training requirements. Additionally, the franchisee and individual involved must have performed their obligations to Bevaris Alliance's satisfaction, and the franchisee's business must meet Bevaris Alliance's requirements as outlined in the current franchise agreement and manual. The franchisee must also execute a general release in favor of Bevaris Alliance.