What is the Renewal Fee for a Bevaris Alliance franchise agreement?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
- 3.2 Renewed Term. The Franchisee may, by notice in writing to the Franchisor, given not less than 6 months before and not more than 8 months before the end of the Initial Term, request the term of this agreement to be renewed for a period of 5 years after the end of the Initial Term. The Franchisor shall, by notice in writing to the Franchisee, given not less than 4 months before the end of the Initial Term, accept a renewal of the term of this agreement, if:
- (a) the Franchisee has paid or will pay on or before entering into the successor franchise agreement (in accordance with clause 4) a Renewal Fee of ten percent (10%) the Franchisor's then current Initial Fee;
- (b) at the end of the Initial Term, there are no outstanding material breaches by the Franchisee or the Individual of this agreement, and there are no grounds on which the Franchisor has a right to terminate this agreement under clause 18;
Source: Item 23 — RECEIPT (FDD pages 22–88)
What This Means (2024 FDD)
According to the 2024 Bevaris Alliance Franchise Disclosure Document, a franchisee can renew their franchise agreement for an additional 5-year term if they meet certain conditions. To renew the agreement, the franchisee must provide written notice to Bevaris Alliance at least 6 months before, but no more than 8 months before, the end of the initial 5-year term.
One of the key conditions for renewal is the payment of a Renewal Fee. This fee is equal to ten percent (10%) of Bevaris Alliance's then-current Initial Fee. This means the exact dollar amount of the renewal fee will depend on what the initial franchise fee is at the time of renewal, not necessarily what it was when the franchisee first signed the agreement.
In addition to paying the Renewal Fee, the franchisee must also ensure that they are not in material breach of the franchise agreement at the end of the initial term. Furthermore, there should be no grounds upon which Bevaris Alliance would have the right to terminate the agreement under clause 18. Meeting these conditions ensures that the franchisee is eligible for a renewal of their Bevaris Alliance franchise.