What standards must a Bevaris Alliance franchisee maintain when operating the Franchisor's business?

ood Service Agreements.

7. Franchisee's obligations

7.1 The Franchisee shall start business on the Commencement Date and, at all times during the Term, in relation to the Franchisee's Business, comply with the obligations set out in this clause 7.

7.2 Business. The Franchisee shall:

• (a) operate the Franchisee's Business strictly in accordance with this agreement, the Manual, all Food Service Agreements, and the terms of any agreement between Franchisor and Franchiser; and
• (b) operate the Franchisor's Business consistent with the highest standards in the industry during the hours specified in the Manual;
• (c) introduce any improvements or modifications into the Franchisee's Business when requested by the Franchisor;
• (d) comply at all times with the Manual, and the Food Service Agreements;
• (e) have the Individual or a manager approved by Franchisor (Manager) spend the majority of their time operating the Franchisee's Business. If a Manager elects to end their relationship with the Franchisee, the Franchisee should recruit a new Manager within 30 days and submit their qualifications to Franchisor for review and approval;
• (f) provide catering services and participate in catering programs offered as part of the System;
• (g) continuously maintain, update, and replace business assets necessary for operation of the Franchised Business (equipment, fixtures, décor, uniforms, etc.).

7.3 Promotion. The Franchisee shall:

• (a) use its best endeavors to promote and extend the Franchisee's Business;
• (b) use its best endeavors to protect and promote the goodwill in the Branded Business;
• (c) not do anything that could or might in the sole opinion of the Franchisor bring the Branded Business into disrepute or damage the reputation of the Branded Business;

• (d) not provide any information to the media about the Branded Business or the Franchisee's Business unless the Franchisor's prior written consent has been obtained;
• (e) obtain Franchisor's prior written approval for any advertising or promotional efforts by Franchisee;
• (f) participate in the System Marketing Fund;
• (g) in addition to the Royalty Fee, pay the System Marketing Fund Fees;
• (h) participate in local or regional marketing cooperatives established by Franchisor; and
• (i) participate in a grand opening marketing program established by or approved Franchisor.

7.4 Purchases. The Franchisee shall:

• (a) only purchase and use Products which are specified by the Franchisor or a supplier that has been approved in writing by the Franchisor in which case Franchisor reserves the right to charge a fee to Franchisee for the review of the Products proposed by the Franchisee;
• (b) pay all suppliers of goods and services sold or provided to the Franchisee in accordance with their terms of payment; and
• (c) Purchase from Franchisor proprietary and/or non-proprietary items related to the Branded Business and System. Franchisor has the right to receive rebates on the sale of such items.

7.5 Supplies to Customers. The Franchisee shall:

• (a) supply products and services to end users in accordance with this agreement and the Manual;
• (b) maintain sufficient stocks and maintain staffing levels to meet reasonably anticipated demand under the Food Service Agreements associated with Franchisee's Business and other customers of the Franchisee's Business;
• (c) promptly replace or refund the price of any Product supplied by or on behalf of the Franchisee which does not conform with the high standards required by the System;
• (d) promptly refund the price of any Services supplied by or on behalf of the Franchisee which does not conform with the high standards required by the System; and
• (e) sell or provide only such Products and Services as may be described from time to time in the Manual upon the terms and conditions therein set out and ensure that the range of Products and Services specified by the Franchisor are available for sale by the Franchisee.

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7.6 Procedures, finance and accounting. The Franchisee shall:

• (a) comply with ordering, invoicing and accounting procedures as required by the Franchisor and as set out in the Manual;
• (b) pay all third-party suppliers promptly in accordance with the terms of supply agreed with them;
• (c) ensure that adequate financing is available to the Franchisee to enable the Franchisee to fully develop the Franchisee's Business in accordance with this agreement;
• (d) use such forms, documents and contracts in relation to the Franchisee's Business as are from time to time designated by the Franchisor and no other similar items;
• (e) accept such charge and credit cards including Visa and Mastercard as are set out in the Manual;
• (f) participate in gift card, customer loyalty, and similar programs; and
• (g) maintain accurate records and financial statements including those in format specified by Franchisor and provide Franchisor access to such records and financial statements including the right to review and audit which will assist Franchisor in its efforts to understand, grow, and maintain a successful System and administer this agreement.

7.7 Pricing. The Franchisee shall:

• (a) Comply with consult with the Franchisor as to the prices to be charged in the Franchisee's Business and refrain from charging in excess of any maximum charges specified by the Franchisor; and
• (b) not enter into any arrangement with any other franchisee concerning the prices to be charged.

7.8 Disclosure of information. The Franchisee shall:

• (a) without delay, inform the Franchisor of any possible or actual improvement or modification to the Branded Business or System or business opportunity which comes to its attention;

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