Can Bevaris Alliance terminate the agreement if the Individual breaches the franchise agreement?
Bevaris_Alliance Franchise · 2024 FDDAnswer 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:
- (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
Source: Item 23 — RECEIPT (FDD pages 22–88)
What This Means (2024 FDD)
According to the 2024 Bevaris Alliance Franchise Disclosure Document, Bevaris Alliance has the right to terminate the franchise agreement with immediate effect if the Individual (as defined in the agreement) breaches the agreement. This termination can occur without affecting any other rights or remedies Bevaris Alliance may have. Bevaris Alliance must provide written notice to both the Franchisee and the Individual.
Several specific scenarios can trigger this termination right. These include failure to pay amounts due under the agreement within seven days of written notice, committing a material breach of the agreement, the Manual, or any other written agreement involving the Franchisee and failing to remedy the breach within 14 days of written notice if the breach is remediable. Other causes for termination include the Individual or Franchisee's employees failing to complete initial training, the Franchisee not starting the business by the Commencement Date, or repeated breaches of the agreement that suggest an inability or unwillingness to comply with its terms.
Furthermore, Bevaris Alliance can terminate the agreement if the Franchisee or Individual provides false or misleading information or makes misrepresentations to obtain the agreement or during its term. Persistent, valid complaints about the quality of service, which the Franchisee fails to address to Bevaris Alliance's satisfaction after notice, also constitute grounds for termination. These termination clauses are typical in franchise agreements to protect the franchisor's brand and standards.