Does the restriction on a Bevaris Alliance franchisee apply if they are acting indirectly?
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 directly or indirectly. Specifically, the restrictions apply to the franchisee and the individual acting on their own behalf or on behalf of, or in conjunction with, any firm, company, or person. This means that franchisees cannot circumvent the restrictions by using a third party or another entity to engage in activities that would otherwise be prohibited.
This provision is designed to protect Bevaris Alliance's confidential information, trade secrets, and business connections, as well as those of its other franchisees. The restrictions aim to prevent franchisees from unfairly competing with the franchisor or other franchisees, either during the term of the agreement or for a specified period after termination or expiration.
The FDD also states that each restriction is intended to be separate and severable. If any restriction is deemed void but could be valid with a minor deletion, the restriction will apply with the necessary deletion to make it valid and effective. This ensures that the remaining restrictions remain enforceable even if one is challenged.