Can the Bevaris Alliance franchisor charge the benefit of any other party's obligations under the agreement?
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 benefits of obligations under the franchise agreement to another party. Specifically, Bevaris Alliance can assign, transfer, mortgage, charge, or otherwise deal with the benefits of any other party's obligations or any benefit arising under the agreement.
This means that Bevaris Alliance can transfer its right to receive certain benefits or payments from the franchisee to a third party, such as a lender or investor. The franchisee is obligated to fulfill their duties to the new assignee once they receive written notice of the assignment from Bevaris Alliance.
However, the franchisee's liability to any assignee cannot be greater than their liability to Bevaris Alliance. Bevaris Alliance retains responsibility for its obligations under the agreement, even if it assigns some of the benefits to another party. Bevaris Alliance may disclose necessary information about the agreement to a proposed assignee after notifying the franchisee of the assignee's identity.