In the context of the Bevaris Alliance agreement, what is required before any disclosure is made pursuant to clause 23.3(d)?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
- 23.3 If there is an assignment pursuant to clause 23.2:
- (d) notwithstanding clause 27.3, the Franchisor may disclose to a proposed assignee any information in its possession that relates to this agreement or its subject matter, the negotiations relating to it and the other party which is reasonably necessary to disclose for the purposes of the proposed assignment; and
- (e) any disclosure pursuant to clause 23.3(d) shall only be made after notice of the identity of the proposed assignee has been given to the Franchisee and Individual.
Source: Item 23 — RECEIPT (FDD pages 22–88)
What This Means (2024 FDD)
According to the 2024 Bevaris Alliance Franchise Disclosure Document, clause 23.3(d) pertains to the franchisor's ability to disclose information to a proposed assignee in the event of an assignment of the agreement. Before Bevaris Alliance can disclose any information about the franchise agreement, its subject matter, the related negotiations, or the franchisee to a potential assignee, they must first provide notice to the franchisee and the individual involved. This notice must include the identity of the proposed assignee.
This requirement ensures that the franchisee is informed about who might be taking over the franchisor's role in the agreement. It gives the franchisee an opportunity to be aware of the potential new party and any potential changes that could arise from the assignment.
This prior notification is a protective measure for the franchisee, allowing them to prepare for a possible transition and seek clarification or legal advice if needed. It aligns with standard business practices that emphasize transparency and communication during significant changes in contractual relationships.