Can a statute's amendment impose new obligations on a party in the Bevaris Alliance agreement?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
- 1.9 A reference to a statute or statutory provision is a reference to it as amended, extended or re-enacted from time to time; provided that, as between the parties, no such amendment, extension or re-enactment shall apply for the purposes of this agreement to the extent that it would impose any new or extended obligation, liability or restriction on, or otherwise adversely affect the rights of, any party.
Source: Item 23 — RECEIPT (FDD pages 22–88)
What This Means (2024 FDD)
According to the 2024 FDD, the Bevaris Alliance franchise agreement addresses the impact of statutory amendments. The agreement states that while references to statutes or statutory provisions include any amendments, extensions, or re-enactments, these changes will not automatically apply if they impose new obligations, liabilities, or restrictions on any party or adversely affect their rights.
This provision protects Bevaris Alliance franchisees from being subjected to new legal requirements or burdens simply because a law has changed. The clause ensures that the terms of the franchise agreement remain stable unless both parties agree to incorporate the statutory amendment.
For a prospective franchisee, this clause offers a degree of security and predictability. It means that Bevaris Alliance cannot unilaterally impose new obligations based on changes in the law without a mutual agreement, safeguarding the franchisee's rights and financial planning. However, it is important to note that this protection applies 'as between the parties,' suggesting that the franchisee must still comply with all applicable laws, but the franchisor cannot use an amendment to retroactively change the terms of the franchise agreement to the franchisee's detriment.