Are there any exceptions to the general rule that the Bevaris Alliance Franchise Agreement cannot be modified?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
| Document download | |||
|---|---|---|---|
| Section in Franchise | |||
| Pr | ovision | Agreement | Summary which must be approved by us. |
| 1. | Bevaris approval of transfer | Section | We have the right to approve all transfers, which shall be |
| by franchisee | 16.11 | subject to the provisions of the Franchise Agreement. | |
| m. | Conditions for Bevaris | Section | Transferee approved by us, transfer fee paid, transferee |
| approval of transfer | 16.11 | not competitor, your account is current, you sign a release, transferee signs all documents, lender consents, and subordination agreements. | |
| n. | Bevaris' right of first refusal to acquire franchisee's business | Section 16.3 | Bevaris can match any offer for the purchase of Your franchise at Bevaris' option. |
| 0. | Bevaris' option to purchase Your business | Section 16.7 | Upon transfer, fair market value (but no value for goodwill), legal compliance, no assumption of your liabilities. |
| p. | Death or disability of franchisee | Section 17 | Franchise may be assigned by estate to approve transferee in three months. |
| q. | Non-competition covenants during the term of the franchise | Section 20.1 | You are prohibited from operating or having an interest in a similar business. |
| r. | Non-competition covenants after the franchise is terminated or expires | Section 20.1 | You are prohibited for 24 months from expiration or termination of the franchise from having a connection with a competing business. |
| s. | Modification of the | Not | No modifications generally, but the Bevaris Alliance |
| agreement | Applicable. | Manual is subject to change. Renewal or extension may subject franchisee to additional restrictions. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 17–18)
What This Means (2024 FDD)
According to Bevaris Alliance's 2024 Franchise Disclosure Document, the Franchise Agreement generally cannot be modified. However, there are a couple of exceptions to this rule. The Bevaris Alliance Manual is subject to change, allowing Bevaris Alliance to update operational procedures and standards without requiring a formal modification to the Franchise Agreement itself. Additionally, the FDD states that renewal or extension of the franchise agreement may subject the franchisee to additional restrictions. This implies that while the core agreement remains largely unchanged, the terms applicable to a franchisee can evolve upon renewal or extension.
This is a fairly standard practice in franchising, as franchise systems need the flexibility to adapt to changing market conditions and industry best practices. The Bevaris Alliance Manual covers the day-to-day operations of the franchise, so changes to the manual can impact how a franchisee runs their business. Franchisees should pay close attention to any updates to the manual, as these changes are binding.
Prospective franchisees should carefully review the sections of the Franchise Agreement that discuss the Bevaris Alliance Manual and the renewal/extension process. Understanding the scope of changes that can be made to the manual and the potential for additional restrictions upon renewal is crucial for making an informed investment decision. Franchisees should also inquire about the frequency and nature of past changes to the manual to get a sense of how the system evolves over time.