What is the required form of confirmation for a Bevaris Alliance franchise renewal?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
- 3.3 Agreement for Renewed Term. Any renewal under this clause 3 shall be effected either by confirmation in writing signed by or on behalf of the parties or, if required by the Franchisor, by the parties entering into a new agreement, which shall be in the Franchisor's then current form of franchise agreement, provided that, on such renewal:
- (a) the Franchisee will not be liable to pay the Initial Fee (or the equivalent of it) under the new agreement;
- (b) the Franchisor will not be under any obligation to perform the obligations under clause 5 or any equivalent obligations under the new agreement; and
- (c) the provisions of clause 3.2 and clause 3.3, or any equivalent provisions under the new agreement, shall not apply in the Renewed Term.
- 3.4 No waiver. Unless the parties agree otherwise in writing, any renewal under this clause 3 shall be without prejudice to any rights or obligations of the parties outstanding at the end of the Initial Term. The Franchisee and the Individual shall waive all claims that it or they may have against the Franchisor arising in respect of this agreement.
- 3.5 Termination on expiration of Term. Unless it is terminated earlier under clause 18, this agreement shall terminate and expire at the end of the Term.
- 3.6 No Express agreement on Renewed Term. If the Franchisee continues to carry on the Franchisee's Business after the end of the Term, but without having agreed to a Renewed Term with the Franchisor, then it will be deemed to do so on the terms and conditions of this agreement (or any agreement entered into by the parties under clause 3.3), except that any party will be entitled to terminate this agreement on giving to the others 30 days written notice of termination.
Source: Item 23 — RECEIPT (FDD pages 22–88)
What This Means (2024 FDD)
According to the 2024 Bevaris Alliance Franchise Disclosure Document, franchise renewal can be effected in one of two ways. First, renewal may occur through a written confirmation signed by or on behalf of both parties, the franchisee and Bevaris Alliance. Alternatively, if required by Bevaris Alliance, the parties can enter into a new franchise agreement. This new agreement will be based on Bevaris Alliance's then-current franchise agreement form.
There are some conditions that apply if a new agreement is required. The franchisee will not be required to pay another initial franchise fee. Bevaris Alliance will not be obligated to perform initial obligations typically associated with a new franchise agreement, such as site selection assistance or initial training. Also, the provisions regarding renewal terms in the original agreement will not apply to the renewed term under the new agreement.
Furthermore, any renewal will not affect any existing rights or obligations of either party unless otherwise agreed in writing. The franchisee and the individual (likely referring to a principal of the franchisee) must waive all claims against Bevaris Alliance related to the original agreement. If the franchisee continues to operate the Bevaris Alliance business after the initial term without a formal renewal agreement, the terms of the original agreement will still apply. However, either party can terminate the agreement with 30 days' written notice.