Does the Bevaris Alliance agreement allow third-party beneficiaries?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
- 1.8 This agreement shall be binding on, and be for the benefit of, the parties to this agreement and their respective personal representatives, successors, and permitted assigns.
A reference to any party shall include that party's personal representatives, successors and permitted assigns.
Source: Item 23 — RECEIPT (FDD pages 22–88)
What This Means (2024 FDD)
According to the 2024 Bevaris Alliance Franchise Disclosure Document, the franchise agreement is binding on the parties involved and their legal representatives, successors, and permitted assignees. Specifically, the agreement is designed to benefit these parties. This means that the agreement's terms and conditions are enforceable by and apply to the franchisee, Bevaris Alliance, and their respective personal representatives, successors, and permitted assignees.
This clause ensures that the obligations and rights outlined in the franchise agreement extend beyond the original signatories to include those who may inherit or otherwise assume their roles. For example, if the franchisee sells the business to an approved buyer, that buyer (the assignee) becomes bound by the agreement. Similarly, if the franchisee passes away, their estate becomes responsible for upholding the agreement's terms.
However, the FDD does not explicitly state that third-party beneficiaries, who are not a party to the agreement, can directly enforce its terms. While the agreement does mention 'third-party purchaser' in the context of share transfers, this reference does not automatically grant third parties the right to benefit from or enforce the agreement. A prospective franchisee should seek clarification from Bevaris Alliance regarding whether any third parties, beyond permitted assignees and successors, can claim rights or benefits under the franchise agreement.