Is it a condition of transfer approval for a Bevaris Alliance franchise that the franchisee's account is current?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| which must be approved by us. | ||
| l. Bevaris approval of transfer | Section | We have the right to approve all transfers, which shall be |
| by franchisee | 16.11 | subject to the provisions of the Franchise Agreement. |
| m. Conditions for Bevaris approval of transfer | Section 16.11 | Transferee approved by us, transfer fee paid, transferee not competitor, your account is current, you sign a release, transferee signs all documents, lender consents, and subordination agreements. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 17–18)
What This Means (2024 FDD)
According to Bevaris Alliance's 2024 Franchise Disclosure Document, a franchisee's account must be current as a condition for transfer approval. Specifically, the FDD outlines several conditions that must be met for Bevaris Alliance to approve the transfer of a franchise.
These conditions include that the transferee must be approved by Bevaris Alliance, the transfer fee must be paid, and the transferee must not be a competitor. Additionally, the franchisee (you) must sign a release, and the transferee is required to sign all necessary documents. Furthermore, lender consent and subordination agreements are also listed as conditions for approval.
This requirement ensures that Bevaris Alliance franchises are transferred in good standing, protecting the brand's financial interests and maintaining operational integrity. Prospective franchisees should ensure they maintain a current account to facilitate a smooth transfer process if they decide to sell their franchise in the future.