What conditions must a transferee meet to be approved by Bevaris Alliance?
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 looking to transfer their franchise must ensure the transferee meets several conditions to gain approval from Bevaris Alliance. These conditions are detailed in Section 16.11 of the Franchise Agreement.
Specifically, the transferee must be approved by Bevaris Alliance. Additionally, the transfer fee must be paid. The transferee cannot be a competitor of Bevaris Alliance. The franchisee's account with Bevaris Alliance must be current at the time of transfer. The franchisee is required to sign a release as part of the transfer process. The transferee must also sign all necessary documents related to the franchise agreement. Furthermore, the lender must provide consent for the transfer, and all required subordination agreements must be in place.
These stipulations are typical in franchise agreements to protect the franchisor's brand and ensure the financial stability and suitability of new franchisees. A prospective Bevaris Alliance franchisee should carefully review Section 16.11 of the Franchise Agreement to fully understand all requirements and obligations related to transferring their franchise.