What is the definition of 'Asset Purchase Notice' in the context of a Bevaris Alliance franchise?

According to Bevaris Alliance's 2024 Franchise Disclosure Document, an 'Asset Purchase Notice' is defined as the notice referred to in clause 16.7 of the franchise agreement. This clause outlines the process by which Bevaris Alliance may elect to purchase a franchisee's business if the franchisee intends to sell it to a third party.

Specifically, clause 16.7 states that within 20 business days of receiving an 'Asset Transfer Notice' from the franchisee (indicating their intent to sell), Bevaris Alliance has the option to issue an 'Asset Purchase Notice'. This notice informs the franchisee that Bevaris Alliance wishes to buy the franchisee's business at the 'Proposed Asset Sale Price,' which is the price the third-party purchaser has offered.

If Bevaris Alliance issues an 'Asset Purchase Notice,' the franchisee is then obligated to sell the business to Bevaris Alliance at the agreed-upon 'Proposed Asset Sale Price.' The sale must be completed within 20 business days of the franchisee's receipt of the 'Asset Purchase Notice'. This process allows Bevaris Alliance to maintain control over its franchise locations and brand by having the first right to purchase a franchise business when the franchisee decides to sell.