What happens if the Bevaris Alliance franchisee doesn't receive written notice of the assignment?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
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 Bevaris Alliance's 2024 Franchise Disclosure Document, if the Franchisor assigns the agreement, the franchisee and the individual involved are required to continue fulfilling their obligations to Bevaris Alliance until they receive written notice of the assignment. This means that until the franchisee receives official written notification, they must continue to operate as if the original agreement with Bevaris Alliance is still in effect.
Once written notice is received, the assignee (the new party to whom the agreement has been assigned) has the right to enforce the agreement as if they were an original party to it. However, Bevaris Alliance remains liable for its obligations under the agreement, even after the assignment. This provides a level of security for the franchisee, as Bevaris Alliance cannot simply walk away from its responsibilities by assigning the agreement.
Furthermore, the liability of the franchisee and the individual to any assignee cannot exceed their original liability to Bevaris Alliance. This clause protects the franchisee from being subjected to increased financial or contractual burdens as a result of the assignment. The FDD also states that Bevaris Alliance may disclose information about the agreement to a proposed assignee, but only after the franchisee and individual have been notified of the assignee's identity. This ensures transparency and allows the franchisee to be aware of who might be taking over the agreement.