Is payment of a transfer fee a condition for Bevaris Alliance approval of a franchise transfer?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| which must be approved by us. | ||
| l. Bevaris approval of transfer | Section | We have the right to approve all transfers, which shall be |
| by franchisee | 16.11 | subject to the provisions of the Franchise Agreement. |
| m. Conditions for Bevaris approval of transfer | Section 16.11 | Transferee approved by us, transfer fee paid, transferee not competitor, your account is current, you sign a release, transferee signs all documents, lender consents, and subordination agreements. |
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, payment of a transfer fee is indeed a condition for approval of a franchise transfer. The FDD outlines several conditions that must be met for Bevaris Alliance to approve a transfer, and these are detailed in Section 16.11 of the Franchise Agreement.
Specifically, Bevaris Alliance requires that the transferee be approved by them, and that the transfer fee is paid. Additional conditions include ensuring the transferee is not a competitor, the franchisee's account is current, the franchisee signs a release, the transferee signs all required documents, and that the lender consents to the transfer and any necessary subordination agreements are in place.
This means that a franchisee looking to sell their Bevaris Alliance franchise must ensure all these conditions are satisfied to gain approval from Bevaris Alliance. Failure to meet any of these conditions could result in the transfer being denied. It is important for prospective franchisees to understand these requirements upfront, as they can significantly impact the ability to sell the franchise in the future.