What does 'Asset Purchase Notice' refer to in the Bevaris Alliance agreement?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
Asset Purchase Notice: means the notice referred to in clause 16.7.
- 16.7 Asset Purchase Notice. Within 20 Business Days of receipt (or deemed receipt) of an Asset Transfer Notice, the Franchisor shall be entitled (but not obliged) to give notice in writing to the Seller that it wishes to purchase the Franchisee's Business at the Proposed Asset Sale Price (Asset Purchase Notice), in which case the Franchisor is bound to buy and the Franchisee is bound to sell the Franchisee's Business at the Proposed Asset Sale Price, with such sale to complete within 20 Business Days of receipt (or deemed receipt) of the Asset Purchase Notice.
Source: Item 23 — RECEIPT (FDD pages 22–88)
What This Means (2024 FDD)
According to Bevaris Alliance's 2024 Franchise Disclosure Document, an 'Asset Purchase Notice' refers to the notice described in clause 16.7 of the franchise agreement. This clause outlines the process if a franchisee wishes to sell their Bevaris Alliance business to a third party.
Specifically, if a franchisee receives an offer from a legitimate third-party buyer, they must first provide an 'Asset Transfer Notice' to Bevaris Alliance. This notice includes details of the proposed transfer, such as the buyer's name and the proposed purchase price. Within 20 business days of receiving this notice, Bevaris Alliance has the option to issue an 'Asset Purchase Notice,' indicating their intent to buy the franchisee's business at the same proposed sale price.
If Bevaris Alliance decides to exercise this option, they are obligated to purchase the business, and the franchisee is obligated to sell it at the agreed-upon price. The sale must be completed within 20 business days of the franchisee's receipt of the 'Asset Purchase Notice'. If Bevaris Alliance does not provide an 'Asset Purchase Notice' within the initial 20-day period, the franchisee is then free to proceed with the sale to the third party, provided the sale occurs within 60 days and meets other specified criteria.