Must there be no outstanding Events of Default for a Beyond Juicery Eatery franchise transfer to be approved?
Beyond_Juicery_Eatery Franchise · 2025 FDDAnswer from 2025 FDD Document
1.01 You have applied for a franchise to own and operate a Beyond Juicery + Eatery Restaurant. Subject to all of the terms and conditions of this Agreement and upon complete execution of this Agreement by all parties, we hereby grant to you a franchise (the "Franchise") to operate a single Beyond Juicery + Eatery Restaurant at a single Location utilizing the System and the Trademarks within a geographic area (the "Designated Area") as we determine. During the Initial Term and for so long as no uncured Event of Default has occurred, we will not establish, nor authorize any other person to establish a Beyond Juicery + Eatery Restaurant within your Designated Area. However, enclosed malls, institutions (such as without limitation, hospitals, schools, military bases, or convention centers), airports, parks (including theme parks), casinos, and sports arenas will be excluded from your Designated Area and we may open other Restaurants, or franchise the right to open Restaurants to other persons, at any of these locations, regardless of where they are located and regardless of the name under which they operate. The Designated Area and Location are described in Attachment 1 attached to this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 60–337)
What This Means (2025 FDD)
According to the 2025 Beyond Juicery Eatery FDD, a franchisee must not have any outstanding Events of Default for the duration of the Initial Term to maintain their franchise. Specifically, as long as no uncured Event of Default has occurred, Beyond Juicery Eatery will not establish, nor authorize any other person to establish a Beyond Juicery Eatery Restaurant within your Designated Area.
This condition ensures that franchisees remain in good standing with Beyond Juicery Eatery throughout the term of their agreement. An "Event of Default" typically refers to a breach of the franchise agreement, such as failure to pay royalties, violation of brand standards, or other significant contractual violations. If a franchisee commits an Event of Default and fails to cure it within the specified time frame, Beyond Juicery Eatery has the right to terminate the franchise agreement.
This clause protects Beyond Juicery Eatery's interests by preventing franchisees who are not in compliance with the franchise agreement from operating within the Designated Area. It also ensures that all franchisees meet the standards and obligations set forth in the franchise agreement, which helps maintain the brand's reputation and consistency. Prospective franchisees should carefully review the franchise agreement to understand what constitutes an Event of Default and what steps they must take to cure such an event to avoid jeopardizing their franchise.