What recourse does a Bevaris Alliance franchisee have if a nearby outlet impacts their business?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
If the parties have a dispute, the parties shall agree on the appointment of an expert, who shall issue a written decision and give notice of the decision to the parties within 90 days of the matter being referred to the expert. The expert’s decision shall be final and binding on the parties.
Source: Item 12 — TERRITORY (FDD page 14)
What This Means (2024 FDD)
The 2024 Bevaris Alliance Franchise Disclosure Document does not explicitly detail any specific recourse a franchisee may have if a nearby outlet impacts their business. The document does outline dispute resolution via an expert, whose decision will be binding. However, this is a general clause for disputes, not specifically for the impact of nearby outlets.
Without specific information in the FDD, it is important for a prospective Bevaris Alliance franchisee to understand what, if any, territorial protections are offered. Item 12 of the FDD would typically contain information about territory, but that section was not provided. Understanding the territory and whether it is exclusive is essential to assessing the risk of competition from other Bevaris Alliance outlets.
Therefore, a potential franchisee should directly ask Bevaris Alliance about the existence and enforcement of any territorial protections, and under what circumstances the franchisor would consider a request for assistance or compensation if another outlet significantly harms an existing franchisee's business. It would also be prudent to discuss the criteria used for site selection and the potential impact of new locations on existing franchisees with current franchisees.