What is the condition regarding the repetition of the warranty at completion of any transfer of the Sale Shares or the Franchisor's Business to the Franchisor in accordance with clause 16 for a Bevaris Alliance franchise?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
- 16.10 Business data disclosure. The Franchisee and the Individual shall give the Franchisor such information concerning the Sale Shares and Franchisee's Business as the Franchisor requests in order to assist it in making its decision as to whether to exercise its rights under this clause 16 as soon as reasonably possible following such request, and warrants that such information shall be true, complete and accurate in all material respects, with such warranty being repeated at completion of any transfer of the Sale Shares or the Franchisor's Business to the Franchisor in accordance with this clause 16.
Source: Item 23 — RECEIPT (FDD pages 22–88)
What This Means (2024 FDD)
According to the 2024 Bevaris Alliance Franchise Disclosure Document, if there is a transfer of shares or assets to Bevaris Alliance under clause 16, the Individual and the Franchisee provide a joint and several warranty. This warranty confirms that the shares or assets are sold with full title guarantee and are free from encumbrances.
Specifically, the FDD states that the warranty regarding the shares or assets being sold with full title guarantee and free from encumbrances is repeated at the completion of any transfer of the Sale Shares or the Franchisor's Business to Bevaris Alliance, as per clause 16. This means that the Individual and Franchisee must warrant that the shares or assets are sold with a full guarantee of ownership and without any liens or other restrictions at the time of completion of the transfer.
This clause protects Bevaris Alliance by ensuring that the company receives clear and unencumbered ownership of the shares or assets being transferred. It also places a continuing obligation on the Individual and Franchisee to guarantee the validity of the transfer at the time it is finalized. This is a fairly standard provision in franchise agreements to protect the franchisor during a transfer scenario.