Can Bevaris Alliance match any offer for the purchase of a Bevaris Alliance franchise?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| n. Bevaris’ right of first refusal to acquire franchisee’s business | Section 16.3 | Bevaris can match any offer for the purchase of Your franchise at Bevaris’ option. |
| o. Bevaris’ option to purchase Your business | Section 16.7 | Upon transfer, fair market value (but no value for goodwill), legal compliance, no assumption of your liabilities. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 17–18)
What This Means (2024 FDD)
According to Bevaris Alliance's 2024 Franchise Disclosure Document, Bevaris Alliance has the right to match any offer a franchisee receives for the purchase of their franchise. This is detailed in Item 17, which covers renewal, termination, transfer, and dispute resolution. Specifically, Bevaris Alliance has the option to match any offer for the purchase of a franchisee's business. This is commonly referred to as a "right of first refusal."
This right of first refusal means that if a franchisee receives an offer from a third party to buy their Bevaris Alliance franchise, the franchisee must first offer Bevaris Alliance the opportunity to purchase the franchise on the same terms. Bevaris Alliance can then decide whether to match the offer and buy the franchise themselves. This provision gives Bevaris Alliance control over who becomes a new franchisee and ensures that the brand maintains consistent standards and practices.
For a prospective franchisee, this means that selling their Bevaris Alliance franchise may involve an extra step. They cannot simply accept the first offer they receive. Instead, they must present the offer to Bevaris Alliance and wait for the company to decide whether to exercise its right of first refusal. This could potentially delay the sale or even prevent it if Bevaris Alliance decides to purchase the franchise themselves. Franchisees should carefully consider this provision and its implications when planning to sell their franchise.
Additionally, the FDD outlines Bevaris Alliance's option to purchase a franchisee's business upon transfer. In this scenario, the purchase price is based on the fair market value, excluding any value for goodwill. Bevaris Alliance will also ensure legal compliance and will not assume any of the franchisee's liabilities. This provides further clarity on the conditions under which Bevaris Alliance might acquire a franchise, either through matching an offer or exercising its option upon transfer.