For Bevaris Alliance, when must the franchisee pay recovered amounts to the franchisor?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
- 22.6 If the Individual exercises any of the rights referred to in clause 22.5, he or she shall:
- (a) hold any amounts recovered on trust for the Franchisor; and
- (b) pay them to the Franchisor on demand.
Source: Item 23 — RECEIPT (FDD pages 22–88)
What This Means (2024 FDD)
According to Bevaris Alliance's 2024 Franchise Disclosure Document, if the Individual, who guarantees the franchisee's obligations, exercises any rights of subrogation, indemnity, or to take benefit of any security for the franchisee's obligations, they must hold any recovered amounts on trust for Bevaris Alliance. The Individual must then pay these amounts to Bevaris Alliance on demand.
This condition is part of a broader clause outlining the Individual's responsibilities as a guarantor. The Individual's guarantee is a continuing one, remaining in effect until the franchisee has fully paid and performed all obligations under the franchise agreement. This means that the personal guarantor's obligations are tied to the franchisee's ongoing performance and financial solvency.
This requirement protects Bevaris Alliance by ensuring that any funds recovered by the Individual related to the franchisee's obligations are immediately directed to the franchisor. This prevents the Individual from using those funds for other purposes and ensures that Bevaris Alliance's financial interests are prioritized. The "on demand" aspect gives Bevaris Alliance immediate access to these recovered funds, providing greater financial security.