What happens if the criteria in clause 16.11 are not satisfied when transferring shares in Bevaris Alliance?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
- 16.4 Transfer where no Purchase Notice given.
If, at the expiration of the initial period specified in clause 16.3, the Franchisor has not given a Purchase Notice, the Franchisee may transfer the Sale Shares to the proposed purchaser identified in the Transfer Notice at a price not less than the Proposed Sale Price provided that it does so within 60 days of the expiration of the initial 20 Business Day period specified in clause 16.3 and the criteria set out in clause 16.11 are satisfied.
Source: Item 23 — RECEIPT (FDD pages 22–88)
What This Means (2024 FDD)
Based on the 2024 Bevaris Alliance Franchise Disclosure Document, clause 16.4 outlines the procedure for transferring shares if the franchisor does not exercise its right to purchase them. Specifically, if Bevaris Alliance does not provide a Purchase Notice within the specified timeframe, the franchisee may proceed with the transfer to the proposed purchaser. However, this is contingent upon meeting the criteria outlined in clause 16.11.
According to clause 16.4, the transfer can only occur if the criteria in clause 16.11 are satisfied. The FDD does not explicitly state the consequences if these criteria are not met. It is implied that the transfer would not be allowed to proceed if the criteria in 16.11 are not met.
As a prospective franchisee, it would be prudent to seek clarification from Bevaris Alliance regarding the specific ramifications of failing to meet the conditions in clause 16.11. Understanding the exact implications can help in making informed decisions about the franchise and planning for potential future transfers of ownership.