After termination or expiration of the Bevaris Alliance franchise agreement, can the franchisee continue to operate the franchised business?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
- 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;
- (c) not make or receive telephone calls in connection with the Branded Business;
- (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;
Source: Item 23 — RECEIPT (FDD pages 22–88)
What This Means (2024 FDD)
According to the 2024 Bevaris Alliance Franchise Disclosure Document, franchisees are required to cease operations of the franchised business upon termination or expiration of the franchise agreement. Specifically, the franchisee must stop operating the Bevaris Alliance system, cease using the trademarks, and discontinue representing themselves as a Bevaris Alliance franchisee.
This means that a former Bevaris Alliance franchisee cannot continue to offer similar services or products under the same brand or using Bevaris Alliance's intellectual property after the agreement ends. They must also redirect any inquiries or potential customer leads to Bevaris Alliance itself.
These restrictions are typical in franchising to protect the brand and prevent confusion in the marketplace. Additionally, for a period of 24 months after the termination or expiration of the Bevaris Alliance franchise agreement, the franchisee is restricted from soliciting customers or employees of Bevaris Alliance.