Are the restrictions in clause 20.1 of the Bevaris Alliance agreement applicable to both the Franchisee and the Individual?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
- 20.1 In order to protect the Confidential Information, trade secrets and business connections of the Franchisor and the Franchisor's other franchisees, the Franchisee and the Individual covenant with the Franchisor that they shall not:
- (a) during the Term or for 24 months after termination or expiration of this agreement, solicit or endeavor to entice away from the Franchisor or any other franchisee of the Franchisor the business or custom of a Restricted Customer with a view to providing goods or services to that Restricted Customer in competition with any Restricted Business; or
- (b) during the Term or for 24 months after termination or expiration of this agreement, in the course of any business concern which is in competition with or similar to the Branded Business or any business of the Franchisor or any Restricted Business, offer to employ or engage, or otherwise endeavor to entice away, any employee of the Franchisor or any other franchisee of the Franchisor who could materially damage the interests of the Franchisor or any other franchisee of the Franchisor, and with whom the Franchisee or the Individual dealt in the 24 months prior to termination of this agreement; or
- (c) during the Term, or for 24 months after termination or expiration of this agreement, be involved as agent, consultant, director, employee, owner, partner or shareholder with any business concern which is (or intends to be) in competition with any Restricted Business; or
- (d) during the Term, or for 24 months after termination of this agreement, be involved with the provision of goods or services to (or otherwise have any business dealings with) any Restricted Customer in the course of any business concern which is in competition with any Restricted Business; or
- (e) at any time after termination of this agreement, represent himself as connected, in any way, with the Franchisor.
- 20.2 None of the restrictions in clause 20.1 shall prevent the Franchisee or Individual from:
- (a) holding an investment by way of shares or other securities of not more than 5% of the total issued share capital of any company, whether or not it is listed or dealt in on a recognized stock exchange; or
Source: Item 23 — RECEIPT (FDD pages 22–88)
What This Means (2024 FDD)
According to the 2024 Bevaris Alliance Franchise Disclosure Document, the restrictions outlined in clause 20.1 apply to both the Franchisee and the Individual. This clause is designed to protect the confidential information, trade secrets, and business connections of Bevaris Alliance and its other franchisees.
The restrictions prevent the Franchisee and the Individual from soliciting or enticing away customers from Bevaris Alliance or its franchisees for 24 months after the termination or expiration of the agreement. They are also prohibited from offering employment to or enticing away any employee of Bevaris Alliance or its other franchisees with whom they had dealings in the 24 months prior to termination, if doing so could materially damage the interests of Bevaris Alliance or its franchisees. Furthermore, during the term and for 24 months after termination, they cannot be involved with any business that competes with any Restricted Business.
These restrictions also prevent the Franchisee and the Individual from providing goods or services to any Restricted Customer through a competing business during the term and for 24 months after termination. Additionally, at any time after termination, they cannot represent themselves as connected with Bevaris Alliance in any way. However, the Franchisee or Individual is allowed to hold an investment of not more than 5% of the total issued share capital of any company, regardless of whether it competes with Bevaris Alliance.