When is the remaining 50% of the Transfer Fee due and payable to Bevaris Alliance?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
- 16.14 Transfer Fee. Any transfer under this clause 16 shall be subject to a Transfer Fee. Fifty percent of the Transfer Fee shall be due and payable upon Franchisee's providing of notice of the proposed transfer to Franchisor pursuant to clauses 16.2 or 16.6 of this agreement, and the remaining fifty percent of the Transfer Fee shall be due and payable upon Franchisor's execution of the new agreement with the transferee.
Source: Item 23 — RECEIPT (FDD pages 22–88)
What This Means (2024 FDD)
According to Bevaris Alliance's 2024 Franchise Disclosure Document, 50% of the transfer fee is due when the franchisee provides notice of the proposed transfer to Bevaris Alliance, as per clauses 16.2 or 16.6 of the agreement. The remaining 50% of the transfer fee is due upon Bevaris Alliance's execution of the new agreement with the transferee.
For a prospective franchisee, this means that the transfer fee is split into two payments. The first half is due when the franchisee informs Bevaris Alliance of their intent to transfer the franchise. The second half is due when Bevaris Alliance approves the transfer and finalizes the agreement with the new franchisee.
This arrangement provides Bevaris Alliance with an upfront payment when the transfer process begins and the remainder upon completion of the transfer. Franchisees need to be aware of these payment terms when planning to sell their franchise, ensuring they have the funds available at the required times.