What constitutes a change of control of a Bevaris Alliance franchisee that could lead to termination?

According to the 2024 Bevaris Alliance Franchise Disclosure Document, a change of control of the franchisee can lead to termination of the franchise agreement. Specifically, section 18.1(t) states that the franchisor can terminate the agreement if "there is a change of Control of the Franchisee."

This provision means that if the ownership or control of the franchisee's business changes hands, Bevaris Alliance has the right to terminate the franchise agreement. The FDD does not define what constitutes a 'change of Control.'

As a prospective franchisee, it is crucial to understand what Bevaris Alliance considers a 'change of Control.' This could include selling the business, transferring a majority ownership stake, or any other event that alters who controls the franchisee entity. It would be prudent to seek clarification from Bevaris Alliance on the specific circumstances that would trigger this termination clause to avoid unintended consequences.