To whom should a Bevaris Alliance franchisee discharge their obligations if the franchisor assigns the agreement?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
and obligations under it (or any document referred to in it); or
- (b) the Franchisee's Business, or purport to do any of the same.
- 23.2 The Franchisor may, at any time, assign (absolutely or by way of security and in whole or in part), transfer, mortgage, charge or deal in any other manner with the benefit of any or all of any other party's obligations or any benefit arising under this agreement.
- 23.3 If there is an assignment pursuant to clause 23.2:
- (a) the Franchisee and Individual shall discharge their obligations under this agreement to the Franchisor until they receive written notice of the assignment;
- (b) the assignee may enforce this agreement as if it were a party to it, but the Franchisor shall remain liable for its obligations under this agreement;
- (c) the liability of the Franchisee and Individual to any assignee cannot be greater than their liability to the Franchisor;
Source: Item 23 — RECEIPT (FDD pages 22–88)
What This Means (2024 FDD)
According to the 2024 Bevaris Alliance Franchise Disclosure Document, if Bevaris Alliance assigns the franchise agreement, franchisees must discharge their obligations to Bevaris Alliance until they receive written notice of the assignment. This means that until the franchisee receives official written notification, they should continue to fulfill all contractual duties and payments to Bevaris Alliance as originally agreed.
After receiving written notice of the assignment, the franchisee's obligations shift to the assignee, who then has the right to enforce the agreement as if they were the original party. However, Bevaris Alliance remains liable for its obligations under the agreement, even after the assignment. This dual liability provides some security for the franchisee, as they can still hold Bevaris Alliance accountable if the assignee fails to meet their obligations.
It is important to note that the liability of the franchisee to any assignee cannot be greater than their original liability to Bevaris Alliance. This protects the franchisee from any increased financial or contractual burden resulting from the assignment. Furthermore, Bevaris Alliance may disclose information about the agreement to a proposed assignee, but only after notifying the franchisee of the assignee's identity. This ensures transparency and allows the franchisee to be aware of who might be taking over the agreement.