Under the Bevaris Alliance agreement, what specific actions are the responsibility of the Individual to ensure the Franchisee fulfills?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
22. Individual's guarantee and covenants
- 22.1 In consideration of the Franchisor entering into this agreement with the Franchisee, the Individual, as primary obligor, irrevocably and unconditionally as separate and independent obligations:
- (a) guarantees the full, prompt and complete performance by the Franchisee of each of its obligations under this agreement and the Food Service Agreements;
(b) guarantees the punctual payment of all sums payable by the Franchisee under this agreement or in consequence of any breach of the provisions of this agreement;
(c) undertakes, immediately on demand, to perform or procure the performance of all the Franchisee's obligations referred to in clause 22.1(a) and clause 22.1(b); and
(d) undertakes to pay to the Franchisor, immediately on demand and unconditionally, such sum to make good all losses, damage, costs and expenses arising out of the Franchisee's failure to perform such obligations, or pay such sums on the due date, or the Individual's failure to comply with the provisions of clause 22.1(a), clause 22.1(b) and clause 22.1(c).
22.2 Before making a demand under clause 22.1, it shall not be necessary for the Franchisor to have made a demand on, taken out proceedings against, or taken any action to enforce any security against the Franchisee or any other person.
22.3 The Individual's liability under this clause 22 shall be joint and several and shall not be reduced, discharged or adversely affected in any way, by:
(a) any unenforceability, invalidity, irregularity, frustration or discharge by operation of law of any of the Franchisee's obligations under this agreement; or
(b) any legal limitation, disability, incapacity or other circumstances relating to the Franchisee or any other person; or
Source: Item 23 — RECEIPT (FDD pages 22–88)
What This Means (2024 FDD)
According to the 2024 Bevaris Alliance Franchise Disclosure Document, the Individual plays a critical role in guaranteeing the Franchisee's obligations. The Individual guarantees the Franchisee's full and prompt performance of all obligations under the franchise agreement and any related Food Service Agreements. This includes ensuring the punctual payment of all sums owed by the Franchisee as per the agreement, covering any breaches of its provisions.
The Individual commits to performing or securing the performance of all the Franchisee's obligations, including payments. They also agree to compensate Bevaris Alliance for any losses, damages, costs, and expenses resulting from the Franchisee's failure to meet their obligations or payment deadlines, or from the Individual's own failure to comply with their obligations. Bevaris Alliance is not required to first demand payment or take action against the Franchisee before seeking recourse from the Individual.
The Individual's liability is joint and several, meaning they are equally responsible alongside the Franchisee. This liability remains in effect regardless of any unenforceability, invalidity, or other issues affecting the Franchisee's obligations. The Individual's obligations are not reduced or affected by any legal limitations, disabilities, or other circumstances related to the Franchisee or any other person.