For Bevaris Alliance, are the parties required to agree on the terms of the Expert's appointment?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
- 24.2 The parties shall agree on the appointment of an independent Expert and shall agree with the Expert the terms of his appointment.
- 24.3 If the parties are unable to agree on an Expert or the terms of his appointment within seven days of either party serving details of a suggested expert on the other, either party shall then be entitled to request a court of competent jurisdiction per clause 27.15 to appoint an Expert of repute with experience in franchise matters.
- 24.4 The Expert is required to prepare a written decision and give notice (including a copy) of the decision to the parties within a maximum of 90 days of the matter being referred to the Expert.
- 24.5 If the Expert dies or becomes unwilling or incapable of acting, or does not deliver the decision within the time required by this clause then:
- (a) either party may apply to a court of competent jurisdiction per clause 27.15 to discharge the Expert and to appoint a replacement Expert with the required expertise; and
- (b) this clause shall apply to the new Expert as if he were the first Expert appointed.
- 24.6 All matters under this clause must be conducted, and the Expert's decision shall be written, in the English language.
- 24.7 The parties are entitled to make submissions to the Expert including oral submissions and will provide (or procure that others provide) the Expert with such assistance and documents as the Expert reasonably requires for the purpose of reaching a decision.
- 24.8 To the extent not provided for by this clause, the Expert may in the Expert's reasonable discretion determine such other procedures to assist with the conduct of the determination as the Expert considers just or appropriate, including instructing professional advisers to assist the Expert in reaching his or her determination.
Source: Item 23 — RECEIPT (FDD pages 22–88)
What This Means (2024 FDD)
According to the 2024 Bevaris Alliance Franchise Disclosure Document, if there is a need to appoint an independent expert, both parties (the franchisor and franchisee) must agree on both the appointment of the expert and the terms of their appointment. If the parties cannot agree on an expert or the terms of their appointment within seven days after one party provides details of a suggested expert to the other, either party can request a court of competent jurisdiction to appoint a reputable expert with experience in franchise matters.
The expert is required to provide a written decision within a maximum of 90 days of the matter being referred to them. If the expert cannot fulfill their duties due to death, unwillingness, incapability, or failure to deliver a decision within the required time, either party can apply to a court to discharge the expert and appoint a replacement. The new expert will be subject to the same conditions as the first.
All matters related to the expert determination must be conducted and written in English. Both parties have the right to make submissions to the expert, including oral submissions, and must provide any assistance and documents reasonably required by the expert to reach a decision. The expert has the discretion to determine other procedures to assist with the determination, including instructing professional advisors.
This process ensures that both Bevaris Alliance and the franchisee have a say in who resolves disputes and under what conditions, but it also provides a mechanism for resolution if they cannot come to an agreement. This is a fairly standard practice in franchising, as it aims to balance the interests of both parties in resolving disputes fairly and efficiently.