What is the condition regarding the satisfaction of clause 16.11 when a Bevaris Alliance franchisee transfers their business to a third party?
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;
Source: Item 23 — RECEIPT (FDD pages 22–88)
What This Means (2024 FDD)
According to the 2024 Bevaris Alliance Franchise Disclosure Document, clause 16.11 outlines the criteria that must be met for a franchisee to transfer their business to a third party. These criteria include obtaining written consent from Bevaris Alliance, which will not be unreasonably withheld if the other conditions are met. Both the franchisee and the individual involved must have complied with all the terms and conditions of the franchise agreement.
Furthermore, the proposed purchaser, including their shareholders and directors if the purchaser is an entity, must meet Bevaris Alliance's current minimum standards for business experience, financial standing, and recruitment criteria. All outstanding monies owed to Bevaris Alliance must be paid in full. The proposed purchaser is also required to undertake and successfully complete initial training.
In summary, a Bevaris Alliance franchisee looking to transfer their business needs to ensure they are in full compliance with their franchise agreement, find a qualified buyer who meets Bevaris Alliance's standards, settle all outstanding payments, and ensure the buyer is trained. These conditions protect Bevaris Alliance's brand and ensure that any new franchisee is well-prepared to operate the business according to established standards.