If a Bevaris Alliance franchisee dies, can the franchise be assigned to an approved transferee?

According to Bevaris Alliance's 2024 Franchise Disclosure Document, in the event of the death or disability of a franchisee, the franchise may be assigned by the estate to an approved transferee within three months. This provision, detailed in Section 17 of the Franchise Agreement, allows for the continuation of the Bevaris Alliance franchise even after the original franchisee is no longer able to manage the business.

This is a fairly standard clause in franchise agreements. It provides a mechanism for the estate of the deceased franchisee to realize the value of the franchise. However, the transfer is not automatic. The proposed transferee must be approved by Bevaris Alliance, ensuring that the new operator meets the franchisor's standards and is capable of maintaining the brand's reputation and operational requirements.

The three-month timeframe places a limit on how long the estate has to find and secure an approved transferee. This period may or may not be sufficient, depending on the complexity of the estate and the availability of suitable candidates. It is important for prospective franchisees to consider this timeframe and discuss with Bevaris Alliance what support they might offer during such a transition. The franchisor also retains rights outlined in Sections 16.3 and 16.7 regarding first refusal and option to purchase the business, which could impact the estate's ability to transfer the franchise to another party.