What happens if the Franchisor, Bevaris Alliance, wishes to purchase the Franchisee's Business?

According to the 2024 Bevaris Alliance Franchise Disclosure Document, if the Individual (the franchisee) wishes to transfer shares in the Franchisee to a third party, they must first give a Transfer Notice to Bevaris Alliance, including the name of the proposed purchaser and the price offered for the shares. However, the FDD stipulates specific conditions if Bevaris Alliance itself wishes to purchase the franchise.

Specifically, the clause stating that the Individual must have received an offer from a third-party purchaser is deemed deleted if the proposed transfer is to Bevaris Alliance. In such a case, the Proposed Sale Price will be the fair market value, as determined by a certified public accounting firm selected by Bevaris Alliance.

Furthermore, if Bevaris Alliance or its beneficiaries do not wish to become the registered holders of the shares and there is no third party involved, the Transfer Notice should be served without reference to a third-party purchaser, and clause 16.3 will apply. This outlines the procedure for Bevaris Alliance to purchase the franchise, ensuring that the franchisee receives fair market value as determined by an independent accounting firm.