Regarding share issues for a Bevaris Alliance franchise, who must provide written consent?

According to the 2024 Bevaris Alliance Franchise Disclosure Document, a franchisee is restricted from issuing any shares to any person other than the Individual without obtaining prior written consent from Bevaris Alliance. This restriction is put in place to ensure that the franchisor maintains control over who becomes involved in the ownership of the franchise.

This requirement means that if a franchisee wants to bring in a partner or investor by issuing shares in their franchise business, they must first seek and receive written approval from Bevaris Alliance. This allows Bevaris Alliance to vet potential new shareholders and ensure they meet the franchisor's standards and expectations. The "Individual" likely refers to the original franchisee or a specific individual named in the franchise agreement.

For a prospective Bevaris Alliance franchisee, this clause highlights the importance of understanding the ownership structure and any future plans for equity sharing. It is essential to factor in the time and potential hurdles involved in obtaining franchisor consent for share issuances. Failing to obtain this consent could result in a breach of the franchise agreement, potentially leading to penalties or termination.