What is the required action of the Franchisee if they wish to transfer the Franchisee's Business of Bevaris Alliance?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
- (b) the price (in cash) that the proposed purchaser has offered to pay for the Franchisee's Business (Proposed Asset Sale Price).
16.7 Asset Purchase Notice. Within 20 Business Days of receipt (or deemed receipt) of an Asset Transfer Notice, the Franchisor shall be entitled (but not obliged) to give notice in writing to the Seller that it wishes to purchase the Franchisee's Business at the Proposed Asset Sale Price (Asset Purchase Notice), in which case the Franchisor is bound to buy and the Franchisee is bound to sell the Franchisee's Business at the Proposed Asset Sale Price, with such sale to complete within 20 Business Days of receipt (or deemed receipt) of the Asset Purchase Notice.
16.8 Transfer of Franchisee's Business third party. If, at the expiration of the initial period specified in clause 16.7, the Franchisor has not given an Ass
Source: Item 23 — RECEIPT (FDD pages 22–88)
What This Means (2024 FDD)
According to the 2024 Bevaris Alliance FDD, if a franchisee wishes to transfer their Bevaris Alliance business, they must provide the franchisor with an Asset Transfer Notice. This notice includes the price (in cash) that the proposed purchaser has offered to pay for the Franchisee's Business, referred to as the Proposed Asset Sale Price.
Within 20 business days of receiving the Asset Transfer Notice, Bevaris Alliance has the option to notify the franchisee (the seller) in writing if they wish to purchase the business at the Proposed Asset Sale Price. If Bevaris Alliance exercises this option by issuing an Asset Purchase Notice, the franchisee is then obligated to sell the business to Bevaris Alliance at the agreed-upon price. The sale must be completed within 20 business days of the franchisee's receipt of the Asset Purchase Notice from Bevaris Alliance.
If Bevaris Alliance does not provide an Asset Purchase Notice within the initial 20-business-day period, the franchisee may proceed with transferring the business to a third party.