Can assignees enforce the terms of the Bevaris Alliance agreement?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
he 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.
- 23.2 The Franchisor may, at any time, assign (absolutely or by way of security and in whole or in part), transfer, mortgage, charge or deal in any other manner with the benefit of any or all of any other party's obligations or any benefit arising under this agreement.
- 23.3 If there is an assignment pursuant to clause 23.2:
- (a) the Franchisee and Individual shall discharge their obligations under this agreement to the Franchisor until they receive written notice of the assignment;
- (b) the assignee may enforce this agreement as if it were a party to it, but the Franchisor shall remain liable for its obligations under this agreement;
- (c) the liability of the Franchisee and Individual to any assignee cannot be greater than their liability to the Franchisor;
Source: Item 23 — RECEIPT (FDD pages 22–88)
What This Means (2024 FDD)
According to the 2024 Bevaris Alliance Franchise Disclosure Document, an assignee may enforce the franchise agreement under specific conditions. Bevaris Alliance, as the Franchisor, retains the right to assign the agreement at any time, either absolutely or as a form of security, in whole or in part. This assignment extends to any obligations or benefits arising from the agreement.
However, the franchisee's obligations to Bevaris Alliance continue until they receive written notice of the assignment. Once notified, the assignee can enforce the agreement as if they were an original party to it. Despite the assignment, Bevaris Alliance remains liable for its obligations under the agreement. The franchisee's liability to the assignee is capped at the level of their original liability to Bevaris Alliance.
Furthermore, Bevaris Alliance is permitted to disclose necessary information about the agreement to potential assignees, but only after notifying the franchisee of the assignee's identity. This ensures transparency and protects the franchisee's interests during the assignment process. These stipulations provide a framework for how an assignee can enforce the terms of the Bevaris Alliance agreement, while also outlining the responsibilities and limitations of all parties involved.