Does the restriction on a Bevaris Alliance franchisee apply if they are acting in conjunction with another person?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
- 20.3 The restrictions imposed on the Franchisee and the Individual by this clause 20 apply to them acting:
- (a) directly or indirectly; and
- (b) on their own behalf or on behalf of, or in conjunction with, any firm, company or person.
- 20.4 Each of the restrictions in this clause 20 is intended to be separate and severable. If any of the restrictions are held to be void but would be valid if part of their wording were deleted, such restriction shall apply with such deletion as may be necessary to make it valid or effective.
Source: Item 23 — RECEIPT (FDD pages 22–88)
What This Means (2024 FDD)
According to the 2024 Bevaris Alliance Franchise Disclosure Document, the restrictions imposed on franchisees apply whether they are acting alone or with others. Specifically, the restrictions apply if the franchisee is acting directly or indirectly, and on their own behalf or on behalf of, or in conjunction with, any firm, company, or person. This means a franchisee cannot circumvent the restrictions by partnering or collaborating with another entity or individual.
This provision is designed to prevent franchisees from undermining the Bevaris Alliance system by engaging in competitive activities through other ventures. The FDD also states that each restriction is intended to be separate and severable, meaning that if one part of the restriction is deemed invalid, the remaining parts still apply. This further reinforces the franchisor's intent to maintain broad control over franchisee activities to protect the brand and system.
For a prospective Bevaris Alliance franchisee, this clause highlights the importance of understanding the full scope of post-term restrictions. It is not enough to simply avoid direct competition; franchisees must also ensure they are not indirectly involved in competitive activities through other business relationships. This could impact future career choices or business ventures after leaving the Bevaris Alliance system. Franchisees should seek legal counsel to fully understand the implications of these restrictions and how they might affect their future plans.