What is the role of the 'Individual' in the termination clauses of the Bevaris Alliance franchise agreement?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
o the standard required by the Manual for a period in excess of 60 days in any 90 day period, the Franchisor may appoint a manager of the Franchisee's Business who shall have full powers to operate the Franchisee's Business and to take all steps to ensure that the Franchisee complies with the terms of this agreement at the expense of the Franchisee.
18. Termination
- 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:
- (a) the Franchisee or Individual fails to pay any amount due under this agreement on the due date for payment and remains in default not less than 7 (seven) days after being notified in writing to make such payment; or
- (b) the Franchisee or Individual commits a material breach of any term of this agreement (other than failure to pay any amounts due under this agreement), the Manual, or any other written agreement between the Franchisor and Franchisee or involving the Franchisee though Franchisee is not a party to such other written agreement (such as a Food Service Agreement) and (if such breach is remediable) fails to remedy that breach (or adequately assist Franchisor in the remedy of a Food Service Agreement) within a period of 14 (fourteen) days after being notified in writing to do so; or
- (c) the Individual or the Franchisee's employees fail to successfully complete the initial training referred to in clause 9; or
- (d) the Franchisee does not start business by the Commencement Date; or
- (e) the Franchisee or Individual repeatedly breaches any of the terms of this agreement in such a manner as to reasonably justify the opinion that its or
- his or her conduct is inconsistent with having the intention or ability to give effect to the terms of this agreement; or
- (f) the Franchisee or Individual gives to the Franchisor any false or misleading information, or makes any misrepresentation in connection with obtaining this agreement or during the Term, in connection with the Franchisee's Business; or
- (g) persistent, valid complaints continue to be made to the Franchisor about the quality of the service provided by the Franchisee and the Franchisee, having received notice of such complaints, fails to improve such service to the reasonable satisfaction of the Franchisor; or
- (h) the Franchisee or the Individual, in the reasonable opinion of the Franchisor, does, or permits to be done, any act which might jeopardize or invalidate the registration of the Trademarks or does any act which might assist, or give rise to, an application to remove the Trademarks, or which might prejudice the right or title of the Franchisor to the Trademarks; or
- (i) the Franchisee or the Individual purports to assign any of the rights or licenses granted under this agreement other than in accordance with the terms of this agreement; or
- (j) the Franchisee fails to obtain any written approval or consent of the Franchisor as expressly required by this agreement;
Source: Item 23 — RECEIPT (FDD pages 22–88)
What This Means (2024 FDD)
According to the 2024 Bevaris Alliance Franchise Disclosure Document, the 'Individual' plays a significant role in the termination of the franchise agreement. The franchisor, Bevaris Alliance, can terminate the agreement with written notice to both the franchisee and the 'Individual' under various circumstances. These circumstances include failure to pay amounts due, material breach of the agreement, failure to complete initial training, providing false information, or repeated breaches of the agreement terms.
Specifically, the agreement states that termination can occur if a liquidator, trustee in bankruptcy, receiver, or similar officer is appointed over the 'Individual' or their business assets. Termination can also occur if a creditor of the 'Individual' attaches or takes possession of their assets, or if the 'Individual' dies, becomes incapacitated, or is convicted of a criminal offense. These clauses highlight that the 'Individual's' financial stability, conduct, and capacity to manage their affairs are critical to the continuation of the Bevaris Alliance franchise agreement.
Furthermore, upon termination or expiration of the agreement, the 'Individual,' along with the franchisee, must cease operating the franchised business, stop using Bevaris Alliance's trademarks and intellectual property, and direct all inquiries and potential customers to the franchisor. The 'Individual' also guarantees the franchisee's obligations under the agreement, including financial obligations, and must cover any losses or damages resulting from the franchisee's failure to meet these obligations. This underscores the 'Individual's' personal responsibility and financial commitment to the Bevaris Alliance franchise.