What happens to the Bevaris Alliance franchise upon the death or disability of the franchisee?
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, specifically Item 17, in the event of the death or disability of a franchisee, the franchise may be assigned by the franchisee's estate to a transferee, provided that Bevaris Alliance approves of the transferee. This assignment must occur within three months of the franchisee's death or disability.
This provision allows for the continuation of the Bevaris Alliance franchise even if the original franchisee is no longer able to operate the business. The estate of the franchisee has a limited window of three months to find a suitable and approved transferee. This ensures that the business can continue to operate without significant disruption, providing potential value to the franchisee's heirs or beneficiaries.
However, the requirement for Bevaris Alliance's approval of the transferee is a critical condition. The franchisor has the right to ensure that the new franchisee meets their standards and is capable of maintaining the brand's reputation and operational quality. This approval process may involve a review of the transferee's financial capabilities, business experience, and overall suitability as a Bevaris Alliance franchisee. Prospective franchisees should inquire about the specific criteria and procedures involved in the transfer approval process to understand the requirements for a potential transferee.