In the event of the death of a Bevaris Alliance franchisee, who are the references to the Individual deemed to be?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
- 17.1 Right of Franchisor to buy shares on death of Individual. If the Individual dies during the Term, his personal representatives shall, within 24 hours inform the Franchisor of his death, and within 30 days offer to sell the Individual's shares to the Franchisor by way of serving a Transfer Notice under clause 16.2. In such circumstances, the terms of clause 16.2, clause 16.3, clause 16.4 and clause 16.2 shall apply save that:
- (a) References to the Individual in those clauses shall be deemed to be references to the Individual's personal representatives.
- (b) References to the third-party purchaser or proposed purchaser in those clauses shall be deemed to be references to the Franchisor or beneficiaries of the shares either in the Individual's will or under the rules on intestacy. If such beneficiaries do not want to become the registered holder of such shares, the references shall be taken as being to any other third party specified in the notice by the personal representatives.
Source: Item 23 — RECEIPT (FDD pages 22–88)
What This Means (2024 FDD)
According to the 2024 Bevaris Alliance Franchise Disclosure Document, in the event of the death of the individual franchisee, references to the 'Individual' in specific clauses of the franchise agreement are considered references to the Individual's personal representatives. These clauses pertain to the sale of the Individual's shares back to Bevaris Alliance.
Specifically, if the Individual dies during the Term, their personal representatives must inform Bevaris Alliance within 24 hours and offer to sell the Individual's shares to Bevaris Alliance within 30 days by serving a Transfer Notice. The terms outlined in clauses 16.2, 16.3, 16.4, and 16.2 apply in this situation, with the modification that references to the Individual are deemed to be references to the Individual's personal representatives.
Furthermore, references to a third-party purchaser are considered references to Bevaris Alliance or beneficiaries of the shares, either through the Individual's will or intestacy laws. If these beneficiaries do not wish to become registered holders of the shares, the references extend to any other third party specified in the notice by the personal representatives. This ensures that the transfer of shares is managed appropriately following the death of the franchisee, either by offering them to Bevaris Alliance or to other designated parties.