Under the Bevaris Alliance agreement, what happens to obligations after the survival period?
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.
- 19.2 Accrued rights. Any termination or expiration of this agreement shall not affect any rights or liabilities that have accrued prior to such termination.
Source: Item 23 — RECEIPT (FDD pages 22–88)
What This Means (2024 FDD)
According to the 2024 Bevaris Alliance Franchise Disclosure Document, upon termination or expiration of the franchise agreement, certain clauses remain in effect for a period of twenty-four months. These clauses include sections related to the consequences of termination, confidentiality, and other general provisions. After this 24-month period, the parties involved generally have no further obligations under the agreement, subject to specific conditions outlined in clause 19.
Specifically, clause 19.1(b) states that clauses 19, 20, 21, 22, 23, 24, 27.2, 27.3, 27.9, 27.13, 27.14, and 27.15 continue in force for 24 months. This means that obligations and rights pertaining to these clauses, such as those concerning intellectual property, payments, and legal matters, remain active during this survival period. After the 24-month survival period, Bevaris Alliance franchisees and the franchisor are released from further obligations under the agreement, provided that all conditions within clause 19 have been met.
However, it's important to note that any rights or liabilities that accrued prior to the termination or expiration of the agreement are not affected by the termination. This means that if there are any outstanding debts, unresolved disputes, or other liabilities that arose before the termination date, these obligations remain even after the 24-month survival period. Prospective Bevaris Alliance franchisees should carefully review these clauses to understand their ongoing responsibilities and rights upon termination or expiration of the franchise agreement.