Does the repurchase option for equipment apply upon both termination and expiration of the Bevaris Alliance franchise agreement?
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.
Source: Item 23 — RECEIPT (FDD pages 22–88)
What This Means (2024 FDD)
According to the 2024 Bevaris Alliance Franchise Disclosure Document, Bevaris Alliance has the option to repurchase equipment from the franchisee upon both the termination and expiration of the franchise agreement. Specifically, Bevaris Alliance may choose to repurchase any plant, equipment, fixtures, and fittings used by the franchisee in their Bevaris Alliance business.
This repurchase will be at a price that Bevaris Alliance reasonably considers to be the current market value of the equipment. The franchisee is responsible for arranging and covering the expenses for all insurance and transport of the plant and equipment, following Bevaris Alliance's reasonable instructions.
If Bevaris Alliance chooses not to exercise its option to repurchase the equipment, the franchisee is then free to sell the items as they see fit. This clause ensures that Bevaris Alliance has the first right to acquire the franchisee's business-related equipment at market value when the franchise agreement ends, whether through termination or expiration.