Are there any clauses in the Bevaris Alliance agreement that do not survive termination or expiration?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
- 19.1 Survival. On termination or expiration of this agreement for any reason:
- (a) Any provision of this agreement that expressly or by implication is intended to come into or continue in force on or after termination or expiration of this agreement, including clause 19, clause 20, clause 21, clause 22, clause 23, clause 24, clause 27.2, clause 27.3, clause 27.9, clause 27.13, clause 27.14, or clause 27.15 shall remain in full force and effect; and
- (b) Clause 19, clause 20, clause 21, clause 22, clause 23, clause 24, clause 27.2, clause 27.3, clause 27.9, clause 27.13, clause 27.14, and clause 27.15 shall continue in force for a period of twenty four (24) months and subject to this clause 19, the parties shall have no further obligations under this agreement.
Source: Item 23 — RECEIPT (FDD pages 22–88)
What This Means (2024 FDD)
According to the 2024 Bevaris Alliance Franchise Disclosure Document, several clauses within the franchise agreement are designed to remain in effect even after the agreement's termination or expiration. Specifically, clauses 19, 20, 21, 22, 23, 24, 27.2, 27.3, 27.9, 27.13, 27.14, and 27.15 will continue to be enforceable. These clauses generally address matters such as the consequences of termination, restrictions on competition, and general provisions.
For a Bevaris Alliance franchisee, this means that certain obligations and restrictions will persist beyond the term of the franchise agreement. For instance, the franchisee must cease operating the franchised business and discontinue using Bevaris Alliance's trademarks and intellectual property. Additionally, the franchisee is typically restricted from competing with Bevaris Alliance or soliciting its customers or employees for a specified period, often two years, after termination or expiration.
The FDD states that clauses 19, 20, 21, 22, 23, 24, 27.2, 27.3, 27.9, 27.13, 27.14, and 27.15 remain in force for twenty-four months. After this period, the parties have no further obligations under the agreement. This ensures that Bevaris Alliance can protect its brand, customer relationships, and trade secrets even after a franchise relationship ends.
It is important for prospective Bevaris Alliance franchisees to carefully review these clauses to understand their post-termination obligations and restrictions. Understanding which clauses survive termination and for how long is crucial for planning future business activities and avoiding potential legal issues. Franchisees should seek legal counsel to fully understand the implications of these clauses and how they may impact their business decisions after the franchise agreement concludes.