If Bevaris Alliance assigns the agreement, does the franchisor remain liable for its obligations?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
- 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;
- (d) notwithstanding clause 27.3, the Franchisor may disclose to a proposed assignee any information in its possession that relates to this agreement or its subject matter, the negotiations relating to it and the other party which is reasonably necessary to disclose for the purposes of the proposed assignment; and
Source: Item 23 — RECEIPT (FDD pages 22–88)
What This Means (2024 FDD)
According to Bevaris Alliance's 2024 Franchise Disclosure Document, in the event that Bevaris Alliance assigns the franchise agreement, it will remain liable for its obligations under the agreement. This is explicitly stated in clause 23.3(b).
This clause protects the franchisee in the event of an assignment. Even if Bevaris Alliance transfers the agreement to another party, it is still responsible for fulfilling its duties as the franchisor. This provides a level of security for the franchisee, ensuring that they can still hold Bevaris Alliance accountable for their obligations, regardless of any assignment.
This type of clause is not uncommon in franchise agreements. It ensures that the franchisor cannot simply avoid its responsibilities by assigning the agreement to a third party. Prospective franchisees should carefully review the assignment clauses in any franchise agreement to understand their rights and protections in the event of an assignment.