Following the death or disability of a Bevaris Alliance franchisee, can the franchise be assigned to any transferee, or must the transferee be approved?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| which must be approved by us. | ||
| l. Bevaris approval of transfer | Section | We have the right to approve all transfers, which shall be |
| by franchisee | 16.11 | subject to the provisions of the Franchise Agreement. |
| m. Conditions for Bevaris approval of transfer | Section 16.11 | Transferee approved by us, transfer fee paid, transferee not competitor, your account is current, you sign a release, transferee signs all documents, lender consents, and subordination agreements. |
| n. Bevaris’ right of first refusal to acquire franchisee’s business | Section 16.3 | Bevaris can match any offer for the purchase of Your franchise at Bevaris’ option. |
| o. Bevaris’ option to purchase Your business | Section 16.7 | Upon transfer, fair market value (but no value for goodwill), legal compliance, no assumption of your liabilities. |
| p. Death or disability of | Section 17 | Franchise may be assigned by estate to approve transferee |
| franchisee | in three months. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 17–18)
What This Means (2024 FDD)
According to Bevaris Alliance's 2024 Franchise Disclosure Document, in the event of the death or disability of a franchisee, the franchise may be assigned by the franchisee's estate. However, this assignment is not guaranteed to just any transferee.
The FDD stipulates that the assignment can only be made to a transferee that Bevaris Alliance approves. The estate has a limited window of three months to complete this transfer to an approved transferee.
This requirement ensures that Bevaris Alliance maintains control over who operates its franchises, even in unforeseen circumstances like death or disability. For a prospective franchisee, this means that their heirs or estate will need to find a buyer who meets Bevaris Alliance's criteria and secure the franchisor's approval within the specified timeframe to ensure a smooth transfer of the franchise.