What compliance is required of the Franchisee and the Individual for a transfer to a third party of a Bevaris Alliance franchise?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
16.11 Transfer criteria. Any transfer to a third party pursuant to this clause 16 shall be subject to the following criteria being satisfied:
(a) the Franchisor having given its written consent to the transfer (not to be unreasonably withheld if the remainder of the criteria set out in this clause 16.11 are satisfied);
(b) the Franchisee and the Individual have both complied with all the terms and conditions of this agreement;
(c) the proposed purchaser (and, in the case of an entity, includes its shareholders and directors) meets the Franchisor's current minimum standards with respect to prior business experience, financial standing and recruitment criteria;
(d) all monies due to the Franchisor have been paid;
(e) the proposed purchaser undertakes and passes initial training;
- (f) the proposed purchaser has entered into a new franchise agreement with the Franchisor on its then current terms and conditions for a period of not less than the outstanding Term of this agreement, except that the proposed purchaser shall not be obliged to pay a sum that is equivalent to the Initial Fee and the Franchisor shall not be required to perform any obligations that are equivalent to those set out in clause 5*,* for which the Franchisor will be paid at its then current rates by the third party purchaser;
- (g) the Franchisee has provided a general release in favor of Franchisor and its Customers to the Franchisor; and
- (h) Franchisee shall surrender all Confidential Information of a Customer to Franchisor and permanently delete all Confidential Information of a Customer from Franchisee's computer systems and records.
Source: Item 23 — RECEIPT (FDD pages 22–88)
What This Means (2024 FDD)
According to the 2024 Bevaris Alliance Franchise Disclosure Document, a transfer to a third party is contingent upon meeting specific criteria outlined in Clause 16.11. Both the Franchisee and the Individual (as defined in the franchise agreement) must have complied with all the terms and conditions of the franchise agreement. Additionally, Bevaris Alliance must provide written consent for the transfer, which will not be unreasonably withheld if the other criteria are met.
The proposed purchaser, including its shareholders and directors if the purchaser is an entity, must meet Bevaris Alliance's current minimum standards regarding prior business experience, financial standing, and recruitment criteria. All monies due to Bevaris Alliance must be paid in full by the franchisee. The proposed purchaser is also required to undertake and successfully complete initial training.
Furthermore, the proposed purchaser must enter into a new franchise agreement with Bevaris Alliance based on the then-current terms and conditions, for a period not less than the outstanding term of the original agreement. The purchaser is not obligated to pay a sum equivalent to the initial franchise fee, and Bevaris Alliance is not required to perform obligations equivalent to those in clause 5, for which the franchisor will be paid at its then current rates by the third party purchaser. The franchisee must provide a general release in favor of Bevaris Alliance and its customers. Lastly, the franchisee must surrender all confidential information of a customer to Bevaris Alliance and permanently delete all confidential information from its computer systems and records.