What is the definition of 'Asset Transfer Notice' in the context of transferring the Franchisee's Business for Bevaris Alliance?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
16.6 Asset Transfer Notice. If the Franchisee wishes to transfer the Franchisee's Business to a third party and has received an offer from a bona fide third-party purchaser for the Franchisee's Business, the Franchisee must first give an Asset Transfer Notice to the Franchisor giving details of the proposed transfer including:
(a) the name of the proposed purchaser; and
(b) the price (in cash) that the proposed purchaser has offered to pay for the Franchisee's Business (Proposed Asset Sale Price).
16.7 Asset Purchase Notice. Within 20 Business Days of receipt (or deemed receipt) of an Asset Transfer Notice, the Franchisor shall be entitled (but not obliged) to give notice in writing to the Seller that it wishes to purchase the Franchisee's Business at the Proposed Asset Sale Price (Asset Purchase Notice), in which case the Franchisor is bound to buy and the Franchisee is bound to sell the Franchisee's Business at the Proposed Asset Sale Price, with such sale to complete within 20 Business Days of receipt (or deemed receipt) of the Asset Purchase Notice.
16.8 Transfer of Franchisee's Business third party. If, at the expiration of the initial period specified in clause 16.7, the Franchisor has not given an Asset Purchase Notice, the Franchisee may transfer the Franchisee's Business to the third party purchaser identified in the Asset Transfer Notice at a price not less than the Proposed Asset Sale Price provided that it does so within 60 days of the expiration of the initial 20 Business Day period specified in clause 16.7 and the criteria set out in clause 16.11 are satisfied.
Source: Item 23 — RECEIPT (FDD pages 22–88)
What This Means (2024 FDD)
According to the 2024 Bevaris Alliance Franchise Disclosure Document, an 'Asset Transfer Notice' is a formal notification that a franchisee must provide to Bevaris Alliance when they intend to transfer their franchise business to a third party. This notice is triggered when the franchisee receives an offer from a legitimate third-party buyer to purchase the Bevaris Alliance franchise.
The Asset Transfer Notice must include specific details of the proposed transfer, including the name of the potential buyer and the proposed purchase price offered in cash for the franchise business. This allows Bevaris Alliance the opportunity to assess the proposed transfer and exercise its right of first refusal.
Upon receiving the Asset Transfer Notice, Bevaris Alliance has a 20-business-day window to decide whether it wants to purchase the franchise business itself at the proposed sale price. If Bevaris Alliance decides to exercise this option by issuing an 'Asset Purchase Notice' to the franchisee, the franchisee is then obligated to sell the business to Bevaris Alliance under the terms specified in the original offer. If Bevaris Alliance does not respond with an Asset Purchase Notice within the 20-business-day period, the franchisee is then permitted to proceed with the sale to the third-party purchaser, provided the sale occurs within 60 days and meets other specified criteria.