factual

What rights or remedies does the Bevaris Alliance franchisor retain after terminating the agreement for cause?

Bevaris_Alliance Franchise · 2024 FDD

Answer from 2024 FDD Document

  • 18.1 Termination for cause by Franchisor. The Franchisor may terminate this agreement with immediate effect (or following such notice period as it sees fit) without prejudice to any of its rights or remedies, by giving written notice to the Franchisee and the Individual if:

19. Consequences of termination

  • 19.1 Survival. On termination or expiration of this agreement for any reason:
    • (a) Any provision of this agreement that expressly or by implication is intended to come into or continue in force on or after termination or expiration of this agreement, including clause 19, clause 20, clause 21, clause 22, clause 23, clause 24, clause 27.2, clause 27.3, clause 27.9, clause 27.13, clause 27.14, or clause 27.15 shall remain in full force and effect; and
  • 19.3 Cessation of business. On termination or expiration of this agreement for any reason, the Franchisee and the Individual shall:
    • (a) immediately pay the Franchisor the full amount of all sums due from the Franchisee to the Franchisor together with any interest payable in accordance with clause 25.2;
    • (b) cease to operate the Franchisee's Business and System and cease to trade under any of the Trademarks, and not hold the Franchisee out as a franchisee of the Franchisor or do anything that may indicate any relationship between them and the Franchisor;
    • (d) immediately stop using the Intellectual Property, including the Trademarks;
    • (e) pass all enquiries made after termination, and full details of potential Customers, to the Franchisor;
    • (f) transfer all Customer lists and full details of contracts with Customers to the Franchisor, and if required by the Franchisor transfer all uncompleted contracts or unfulfilled orders to the Franchisor or its nominee;
    • (g) cease to use the Franchise Software and other software supplied to the Franchisee by the Franchisor, and return or at the Franchisor's option, destroy, (without copying) all elements of it, including all software, data, hardware and documentation relating to it;
    • (h) return or at the option of the Franchisor, destroy, all copies of the Manual, and other Products or materials bearing any of the Trademarks;
    • (i) pay all debts owing to creditors of the Franchisee's Business, and irrevocably permit the Franchisor to deduct from all sums payable by the Franchisor to the Franchisee all sums which the Franchisor pays (whether legally obliged to or not) pursuant to this clause;
    • (k) assign to the Franchisor all domain name registrations and rights in website content owned or used by the Franchisee in the Franchisee's Business;

Source: Item 23 — RECEIPT (FDD pages 22–88)

What This Means (2024 FDD)

According to Bevaris Alliance's 2024 Franchise Disclosure Document, if the franchise agreement is terminated for cause, the franchisor retains specific rights and remedies. Bevaris Alliance can terminate the agreement with immediate effect, or after a notice period, without affecting any other rights or remedies they may have. This is enacted by providing written notice to both the franchisee and the individual involved.

Following termination, several clauses of the agreement remain in effect, including those related to consequences of termination and general provisions. The franchisee must immediately pay all outstanding sums due to Bevaris Alliance, including any interest. They must also cease operating the franchised business, stop using Bevaris Alliance's trademarks, and discontinue using any of Bevaris Alliance's intellectual property. All customer inquiries and details of potential customers must be passed on to Bevaris Alliance.

Furthermore, the franchisee is required to transfer all customer lists and contract details to Bevaris Alliance, and if required, transfer any uncompleted contracts. The franchisee must also stop using the franchise software and return or destroy all copies of the manual and other materials bearing Bevaris Alliance's trademarks. The franchisor is also permitted to deduct from any sums payable to the franchisee any debts the franchisor pays on behalf of the franchisee's business. The franchisee must also assign all domain name registrations and rights in website content to Bevaris Alliance.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.