In the event of the death or disability of a Bevaris Alliance franchisee, what section of the Franchise Agreement applies?

According to Bevaris Alliance's 2024 Franchise Disclosure Document, Section 17 of the Franchise Agreement addresses the death or disability of a franchisee. Specifically, it states that in such an event, the franchise may be assigned by the franchisee's estate to a transferee approved by Bevaris Alliance, provided this occurs within three months. This provision ensures business continuity while also protecting Bevaris Alliance's interests by requiring their approval of the new franchisee.

This clause is important for prospective franchisees as it outlines the procedure in case of unforeseen circumstances like death or disability. The estate has a limited time frame of three months to find an approved transferee, which could present challenges. If a suitable transferee is not found within this period, the franchisor may have the right to terminate the agreement or purchase the franchise, potentially impacting the financial interests of the franchisee's heirs.

It is common in franchise agreements to have clauses addressing such events, but the specifics can vary. Some franchisors might offer more extended periods for transfer or have different criteria for transferee approval. A prospective Bevaris Alliance franchisee should carefully consider this provision and discuss with the franchisor what support or flexibility might be available to the estate during this transition period. Understanding these details is crucial for both the franchisee and their family's long-term security.