Who has the right to enforce the terms of the Bevaris Alliance agreement?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
ncorporated or established.
- 1.6 Words in the singular shall include the plural and vice versa.
- 1.7 A reference to one gender shall include a reference to the other genders.
- 1.8 This agreement shall be binding on, and be for the benefit of, the parties to this agreement and their respective personal representatives, successors, and permitted assigns. A reference to any party shall include that party's personal representatives, successors and permitted assigns.
Source: Item 23 — RECEIPT (FDD pages 22–88)
What This Means (2024 FDD)
According to the 2024 Bevaris Alliance Franchise Disclosure Document, the agreement is binding on the parties involved, including their successors and permitted assignees. Specifically, the agreement benefits and binds the parties, their personal representatives, successors, and permitted assigns. This means that not only the original parties to the agreement (the franchisor and franchisee) can enforce the terms, but also any entity or individual who legally takes over their rights or responsibilities.
This clause ensures that the obligations and benefits outlined in the franchise agreement are not extinguished if either party undergoes a change in ownership or structure. For example, if the franchisee sells the business to an approved buyer (assignee), that buyer can enforce the original agreement's terms against Bevaris Alliance. Similarly, if Bevaris Alliance is acquired by another company (successor), the franchisee can enforce the agreement against the new company.
The FDD also specifies that "A reference to any party shall include that party's personal representatives, successors and permitted assigns." This further clarifies that the rights and obligations extend beyond the original signatories to encompass those who inherit or are legally transferred the responsibilities or benefits of the agreement. This is a standard provision in franchise agreements to ensure continuity and stability in the franchise relationship, even if the original parties are no longer directly involved.
However, the FDD explicitly states in section 27.9 that "No one other than a party to this agreement, their successors and permitted assignees, shall have any right to enforce any of its terms." This means that third parties who are not directly involved in the agreement, even if they might benefit from it indirectly, do not have the right to take legal action to enforce its provisions. This clause is designed to protect the franchisor and franchisee from interference by outside parties and to maintain the integrity of the contractual relationship.