Can the Bevaris Alliance franchisor assign the agreement in part?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
he prior written consent of the Franchisor (such consent not to be unreasonably conditioned, withheld or delayed), assign, transfer, mortgage, charge, declare a trust of, sub-contract, delegate or deal in any other manner with:
- (a) this agreement or any of their rights 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, Bevaris Alliance has the right to assign the franchise agreement, either absolutely or as a form of security, and this can be done in whole or in part. This means Bevaris Alliance can transfer its rights and obligations under the agreement to another party without needing the franchisee's consent.
If Bevaris Alliance assigns the agreement, the franchisee must continue to fulfill their obligations to Bevaris Alliance until they receive written notice of the assignment. After receiving notice, the franchisee will then be obligated to the assignee. The assignee can then enforce the agreement as if they were Bevaris Alliance, but Bevaris Alliance remains liable for its obligations under the agreement.
The franchisee's liability to any assignee cannot exceed their original liability to Bevaris Alliance. Bevaris Alliance can also disclose information about the agreement to a proposed assignee, provided they give the franchisee notice of the assignee's identity. This clause ensures that Bevaris Alliance retains considerable flexibility in managing its business and assets, while also outlining the franchisee's responsibilities in the event of an assignment.