Regarding the repurchase of equipment by Bevaris Alliance upon termination, does this include fixtures and fittings?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
- 19.4 Repurchase of equipment. On termination or expiration of this agreement for any reason, the Franchisor may, at its option, repurchase any plant, equipment, fixtures and fittings used by the Franchisee for the purpose of the Franchisee's Business including the Equipment, at such price as the Franchisor reasonably considers to be its current market value.
The Franchisee shall, at its expense, arrange all insurance and transport of such plant and equipment in accordance with the Franchisor's reasonable instructions.
If the Franchisor does not exercise its option, the Franchisee shall be free to sell such items as it chooses.
- 19.5 Return of loaned and hired equipment. On termination or expiration of this agreement for any reason, the Franchisee must return (at its expense and in good working order and condition) all items of equipment held on loan or hire from the
Franchisor under the terms of this agreement. Until they have been returned or repossessed, the Franchisee shall be solely responsible for the safe keeping, supervision, custody and insurance of them.
19.6 Right of entry. If the Franchisee fails to fulfil its obligations under this clause 19 within a reasonable time, the Franchisor may, at the expense of the Franchisee, immediately and without notice, enter onto the Franchisee's premises and take such steps as it thinks fit to fulfil any outstanding obligations.
Source: Item 23 — RECEIPT (FDD pages 22–88)
What This Means (2024 FDD)
According to the 2024 Bevaris Alliance Franchise Disclosure Document, upon termination or expiration of the franchise agreement, Bevaris Alliance has the option to repurchase certain assets from the franchisee. This repurchase option extends to plant, equipment, fixtures, and fittings used in the franchisee's business, including equipment. The repurchase price will be the current market value as reasonably determined by Bevaris Alliance.
If Bevaris Alliance chooses to exercise its repurchase option, the franchisee is responsible for arranging and covering the costs of insurance and transportation of the plant and equipment, following Bevaris Alliance's instructions. However, if Bevaris Alliance decides not to repurchase these items, the franchisee is free to sell them independently.
Additionally, the FDD states that upon termination or expiration of the agreement, the franchisee must return any equipment held on loan or hire from Bevaris Alliance, at the franchisee's expense and in good working order. The franchisee remains responsible for the safekeeping, supervision, custody, and insurance of these loaned or hired items until they are returned or repossessed. If the franchisee fails to meet these obligations, Bevaris Alliance has the right to enter the franchisee's premises and take necessary actions to fulfill any outstanding obligations at the franchisee's expense.