Who is responsible for the insurance and transport of repurchased equipment after termination of a Bevaris Alliance franchise?
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, in the event of termination or expiration of the franchise agreement, the franchisee is responsible for the insurance and transport of any equipment that Bevaris Alliance chooses to repurchase.
Specifically, Bevaris Alliance has the option to repurchase any plant, equipment, fixtures, and fittings used by the franchisee's business at a price that Bevaris Alliance reasonably considers to be its current market value. If Bevaris Alliance exercises this option, the franchisee must arrange all insurance and transport of the equipment at their own expense, following Bevaris Alliance's reasonable instructions.
This means that upon termination, a franchisee may incur additional costs related to insuring and transporting the equipment if Bevaris Alliance decides to repurchase it. If Bevaris Alliance does not exercise its option to repurchase the equipment, the franchisee is free to sell the items as they choose. This clause highlights a potential financial responsibility for the franchisee upon termination of the agreement, depending on Bevaris Alliance's decision to repurchase equipment.