How is the repurchase price of equipment determined by Bevaris Alliance upon termination?
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 Bevaris Alliance's 2024 Franchise Disclosure Document, upon termination or expiration of the franchise agreement, Bevaris Alliance has the option to repurchase the franchisee's plant, equipment, fixtures, and fittings, including the Equipment. The repurchase price will be the current market value of the items, as reasonably determined by Bevaris Alliance.
This means that if a franchisee's agreement ends, Bevaris Alliance is not obligated to buy back the equipment, but they have the option to do so. If Bevaris Alliance chooses to repurchase the equipment, the franchisee will receive the current market value, which is determined by Bevaris Alliance.
The franchisee is responsible for the expense of arranging insurance and transport of the plant and equipment according to Bevaris Alliance's instructions. If Bevaris Alliance does not exercise its option to repurchase the equipment, the franchisee is free to sell the items to another buyer.