factual

Does the Bevaris Alliance agreement allow a franchisee to declare a trust of their rights and obligations?

Bevaris_Alliance Franchise · 2024 FDD

Answer from 2024 FDD Document

  • 23.1 This agreement is personal to the Franchisee and the Individual, who, subject to clause 16 and clause 17 may not, without the prior written consent of the Franchisor (such consent not to be unreasonably conditioned, withheld or delayed), assign, transfer, mortgage, charge, declare a trust of, sub-contract, delegate or deal in any other manner with:
    • (a) this agreement or any of their rights and obligations under it (or any document referred to in it); or
    • (b) the Franchisee's Business, or purport to do any of the same.

Source: Item 23 — RECEIPT (FDD pages 22–88)

What This Means (2024 FDD)

According to Bevaris Alliance's 2024 Franchise Disclosure Document, the franchise agreement is personal to both the franchisee and the individual involved. Clause 23.1 specifies that the franchisee and the individual, subject to clauses 16 and 17, require prior written consent from Bevaris Alliance to declare a trust of the agreement or any rights and obligations under it. This consent will not be unreasonably conditioned, withheld, or delayed. This restriction also applies to the franchisee's business.

This means that a franchisee cannot unilaterally declare a trust involving their Bevaris Alliance franchise agreement or business. They must first obtain written permission from Bevaris Alliance. This provision allows Bevaris Alliance to maintain control over who benefits from the franchise rights and obligations, ensuring that any transfer of benefits aligns with their standards and approval.

This requirement is fairly standard in franchising, as franchisors typically want to carefully control who is involved in their franchise system. By requiring consent, Bevaris Alliance can assess the suitability of any proposed trustee and ensure they meet the necessary qualifications and standards. Franchisees need to be aware of this restriction and factor in the time and potential difficulty of obtaining consent if they contemplate declaring a trust related to their franchise.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.