Does the non-exclusive license from Bevaris Alliance include the use of Intellectual Property?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
- 2.1 Non-Exclusive License to operate the Franchisee's Business. In consideration of the payments agreed to be made in clause 4, the Franchisor grants the Franchisee a non-exclusive license to:
- (a) operate the Franchisee's Business;
- (b) use the Intellectual Property in respect of the Franchisee's Business; and
- (c) use the benefit of the Franchisor's operational knowledge and experience, in accordance with the System, during the Term and in accordance with the provisions of this agreement, the Manual, and the Food Service Agreements.
- 2.2 No Exclusivity. The Franchisor may operate, make use of or license any person other than the Franchisee to operate the Branded Business under any of the Trademarks or the Trade Name in any area including the area in which the Franchisee operates the Franchisee's Business. The Franchisor without limiting the foregoing, may perform all Reserved Activities. The Franchisor may select any franchisee for performance of a Food Service Agreement. After a franchisee is selected for a particular Food Service Agreement, the Franchisor may replace the selected franchisee with another franchisee or itself provide the Products and Services directly under the Food Service Agreement.
Source: Item 23 — RECEIPT (FDD pages 22–88)
What This Means (2024 FDD)
According to Bevaris Alliance's 2024 Franchise Disclosure Document, the franchise agreement grants franchisees a non-exclusive license that includes the use of Intellectual Property. Specifically, in exchange for the payments outlined in the franchise agreement, Bevaris Alliance grants the franchisee the right to operate their business, utilize the Intellectual Property related to the business, and benefit from the franchisor's operational knowledge and experience. This license is valid for the term of the agreement and must be exercised in accordance with the agreement's provisions, the manual, and any Food Service Agreements.
However, this license is non-exclusive, meaning Bevaris Alliance retains the right to operate, utilize, or license others to operate the Branded Business under the Trademarks or Trade Name, even within the franchisee's operating area. This includes the right for Bevaris Alliance to perform all Reserved Activities and to select any franchisee for the performance of a Food Service Agreement, with the option to replace the selected franchisee or provide the products and services directly.
This non-exclusive nature of the license has important implications for prospective franchisees. While they are granted the right to use Bevaris Alliance's Intellectual Property, they must also recognize that Bevaris Alliance can authorize other franchisees or even compete directly within the same territory. Therefore, franchisees should carefully consider the potential for competition and the impact it may have on their business before investing in a Bevaris Alliance franchise.