What is the relationship between the trademarks granted to a Bevaris Alliance franchisee (Item 13) and the restrictions on the franchisee's territory (Item 12)?

According to the 2024 FDD, Bevaris Alliance grants franchisees the right to operate under the Bevaris Alliance name and use their trademarks. However, Item 12 states that franchisees do not receive an exclusive territory. This means Bevaris Alliance can establish other franchised or company-owned outlets that may compete with a franchisee's business.

While franchisees are granted the right to use Bevaris Alliance's trademarks, this right is not tied to an exclusive territory. The franchisee must follow Bevaris Alliance's rules for using the trademarks and cannot use them to sell unauthorized products or services. The franchisor may also modify or discontinue a trademark, in which case the franchisee must comply, with Bevaris Alliance reimbursing tangible costs like changing signs.

Therefore, even though a franchisee has the right to use Bevaris Alliance's trademarks, the lack of an exclusive territory means that other Bevaris Alliance outlets, whether franchised or company-owned, can operate in the same area and potentially compete for the same customers. This could impact a franchisee's ability to fully leverage the brand's trademarks within a specific geographic area, as there is no guarantee of market exclusivity.

In summary, the right to use Bevaris Alliance's trademarks provides brand recognition and association, but the non-exclusive territory means franchisees face potential competition from other Bevaris Alliance outlets, which could dilute the benefits of the trademarks within their operating area.