What is the procedure for the Franchisee to transfer the Franchisee's Business to a third party for Bevaris Alliance?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
16.7 Asset Purchase Notice. Within 20 Business Days of receipt (or deemed receipt) of an Asset Transfer Notice, the Franchisor shall be entitled (but not obliged) to give notice in writing to the Seller that it wishes to purchase the Franchisee's Business at the Proposed Asset Sale Price (Asset Purchase Notice), in which case the Franchisor is bound to buy and the Franchisee is bound to sell the Franchisee's Business at the Proposed Asset Sale Price, with such sale to complete within 20 Business Days of receipt (or deemed receipt) of the Asset Purchase Notice.
16.8 Transfer of Franchisee's Business third party. If, at the expiration of the initial period specified in clause 16.7, the Franchisor has not given an Asset Purchase Notice, the Franchisee may transfer the Franchisee's Business to the third party purchaser identified in the Asset Transfer Notice at a price not less than the Proposed Asset Sale Price provided that it does so within 60 days of the expiration of the initial 20 Business Day period specified in clause 16.7 and the criteria set out in clause 16.11 are satisfied.
16.9 Entire business transfer for cash only.
The Franchisee shall not be permitted to transfer part only of the Franchisee's Business.
Any transfer must be of the whole of the assets, rights and properties comprising the Franchisee's Business, transferred as a going concern, and shall be for cash consideration only.
16.10 Business data disclosure. The Franchisee and the Individual shall give the Franchisor such information concerning the Sale Shares and Franchisee's Business as the Franchisor requests in order to assist it in making its decision as to whether to exercise its rights under this clause 16 as soon as reasonably possible following such request, and warrants that such information shall be true, complete and accurate in all material respects, with such warranty being repeated at completion of any transfer of the Sale Shares or the Franchisor's Business to the Franchisor in accordance with this clause 16.
16.11 Transfer criteria. Any transfer to a third party pursuant to this clause 16 shall be subject to the following criteria being satisfied:
(a) the Franchisor having given its written consent to the transfer (not to be unreasonably withheld if the remainder of the criteria set out in this clause 16.11 are satisfied);
(b) the Franchisee and the Individual have both complied with all the terms and conditions of this agreement;
(c) the proposed purchaser (and, in the case of an entity, includes its shareholders and directors) meets the Franchisor's current minimum standards with respect to prior business experience, financial standing and recruitment criteria;
(d) all monies due to the Franchisor have been paid;
(e) the proposed purchaser undertakes and passes initial training;
Source: Item 23 — RECEIPT (FDD pages 22–88)
What This Means (2024 FDD)
According to the 2024 Bevaris Alliance Franchise Disclosure Document, a franchisee wishing to transfer their business to a third party must first provide an Asset Transfer Notice to Bevaris Alliance. Within 20 business days of receiving this notice, Bevaris Alliance has the option to purchase the franchisee's business at the proposed asset sale price. If Bevaris Alliance does not exercise this option within the specified timeframe, the franchisee can proceed with the transfer to the third party identified in the Asset Transfer Notice.
However, this transfer to a third party is contingent upon several criteria. First, Bevaris Alliance must provide written consent to the transfer, which will not be unreasonably withheld if the other criteria are met. Both the franchisee and the individual involved must have complied with all the terms and conditions of the franchise agreement. The proposed purchaser, including its shareholders and directors if applicable, must meet Bevaris Alliance's current minimum standards regarding prior business experience, financial standing, and recruitment criteria.
Furthermore, all monies owed to Bevaris Alliance must be paid in full before the transfer can occur. The proposed purchaser is also required to undertake and pass initial training. The transfer must involve the entire business, including all assets, rights, and properties, transferred as a going concern, and the consideration must be in cash only.
Finally, both the franchisee and the individual are obligated to provide Bevaris Alliance with any information requested concerning the sale and the franchisee's business to assist in the decision-making process. They warrant that all such information provided is true, complete, and accurate in all material respects, and this warranty is repeated upon completion of any transfer.