Under what conditions can a Bevaris Alliance franchisee hold shares in another company?

Based on the 2024 Bevaris Alliance Franchise Disclosure Document, the document does not explicitly state the conditions under which a franchisee can hold shares in another company. However, the FDD does include restrictions on activities that a franchisee can engage in during the term of the agreement and for 24 months after termination or expiration of the agreement. Specifically, the franchisee and individual covenant with the franchisor that they shall not solicit or endeavor to entice away from the Franchisor or any other franchisee of the Franchisor the business or custom of a Restricted Customer with a view to providing goods or services to that Restricted Customer in competition with any Restricted Business.

Because the FDD does not provide specific details regarding holding shares in another company, it is important for a prospective franchisee to seek clarification from Bevaris Alliance regarding their policies on outside business interests and potential conflicts of interest. This would include understanding what types of businesses would be considered competitive and what level of ownership or involvement would be permissible.

It is common practice for franchise agreements to include clauses that prevent franchisees from engaging in activities that directly compete with the franchised business, especially during the term of the agreement and for a certain period afterward. However, the specifics can vary widely, so direct inquiry is essential to fully understand the scope of any restrictions.