Is Bevaris Alliance required to notify the franchisee before disclosing information to a proposed assignee?

According to Bevaris Alliance's 2024 Franchise Disclosure Document, Bevaris Alliance is required to notify the franchisee before disclosing information to a proposed assignee. Specifically, Bevaris Alliance may disclose to a proposed assignee any information in its possession that relates to the franchise agreement, its subject matter, the negotiations relating to it, and the other party, which is reasonably necessary to disclose for the purposes of the proposed assignment. However, this disclosure can only occur after Bevaris Alliance has given notice of the identity of the proposed assignee to the franchisee.

This clause protects the franchisee by ensuring they are informed about who Bevaris Alliance is considering transferring the agreement to. It allows the franchisee to be aware of potential changes in the business relationship and to prepare for any adjustments that may be necessary. This is a fairly standard practice in franchising, as it promotes transparency and maintains a level of communication between the franchisor and franchisee during significant transitions.

It is important for a prospective Bevaris Alliance franchisee to understand the conditions under which the franchisor can disclose information to a third party. Knowing that they will be notified of the proposed assignee's identity beforehand allows the franchisee to assess the potential impact of the assignment on their business. This also gives the franchisee an opportunity to raise any concerns or seek clarification regarding the proposed assignment, fostering a more collaborative and informed transition process.