Does Bevaris Alliance have to provide a notice period before terminating the agreement for cause?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
- 18.1 Termination for cause by Franchisor. The Franchisor may terminate this agreement with immediate effect (or following such notice period as it sees fit) without prejudice to any of its rights or remedies, by giving written notice to the Franchisee and the Individual if:
- (a) the Franchisee or Individual fails to pay any amount due under this agreement on the due date for payment and remains in default not less than 7 (seven) days after being notified in writing to make such payment; or
- (b) the Franchisee or Individual commits a material breach of any term of this agreement (other than failure to pay any amounts due under this agreement), the Manual, or any other written agreement between the Franchisor and Franchisee or involving the Franchisee though Franchisee is not a party to such other written agreement (such as a Food Service Agreement) and (if such breach is remediable) fails to remedy that breach (or adequately assist Franchisor in the remedy of a Food Service Agreement) within a period of 14 (fourteen) days after being notified in writing to do so; or
- (c) the Individual or the Franchisee's employees fail to successfully complete the initial training referred to in clause 9; or
- (d) the Franchisee does not start business by the Commencement Date; or
- (e) the Franchisee or Individual repeatedly breaches any of the terms of this agreement in such a manner as to reasonably justify the opinion that its or
Source: Item 23 — RECEIPT (FDD pages 22–88)
What This Means (2024 FDD)
According to the 2024 Bevaris Alliance Franchise Disclosure Document, Bevaris Alliance has the right to terminate the franchise agreement with immediate effect or after a notice period they deem appropriate. This is without losing any rights or remedies they may have. To do so, Bevaris Alliance must provide written notice to both the franchisee and the individual involved.
However, there are specific instances where Bevaris Alliance may choose to terminate the agreement. One such instance is if the franchisee or the individual fails to pay any amount due under the agreement by the due date, and the default continues for at least seven days after receiving written notification to make the payment. Another cause for termination is if the franchisee or individual materially breaches any term of the agreement, the manual, or any other written agreement with Bevaris Alliance. In this case, if the breach is fixable, the franchisee has 14 days after written notification to remedy the breach or adequately assist Bevaris Alliance in remedying a Food Service Agreement.
Additional causes for termination include the individual or the franchisee's employees failing to complete initial training, the franchisee not starting the business by the commencement date, or repeated breaches of the agreement terms that suggest an inability or unwillingness to comply with the agreement. Furthermore, providing false or misleading information to Bevaris Alliance, persistent valid complaints about the service quality, or certain events related to bankruptcy, insolvency, or criminal activity can also lead to termination.