Is Bevaris Alliance's consent required for a transfer 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, transferring ownership to a third party requires the franchisor's written consent. Specifically, clause 16.11(a) states that the franchisor must provide written consent for the transfer to proceed. However, this consent cannot be unreasonably withheld if the other criteria outlined in clause 16.11 are met.
This condition means that a Bevaris Alliance franchisee cannot simply sell or transfer their franchise to anyone they choose. They must first seek and obtain approval from Bevaris Alliance. This provision allows Bevaris Alliance to maintain control over who operates franchises under their brand, ensuring that new owners meet their standards for business experience, financial stability, and other qualifications.
Other requirements that must be met for a transfer to a third party include the franchisee and the individual complying with all the terms and conditions of the agreement, the proposed purchaser meeting the franchisor's minimum standards, all monies due to the franchisor being paid, and the proposed purchaser undertaking and passing initial training. The prospective purchaser must also enter into a new franchise agreement with Bevaris Alliance.