What section of the Bevaris Alliance Franchise Agreement discusses Bevaris Alliance's approval of franchisee transfers?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| which must be approved by us. | ||
| l. Bevaris approval of transfer | Section | We have the right to approve all transfers, which shall be |
| by franchisee | 16.11 | subject to the provisions of the Franchise Agreement. |
| m. Conditions for Bevaris approval of transfer | Section 16.11 | Transferee approved by us, transfer fee paid, transferee not competitor, your account is current, you sign a release, transferee signs all documents, lender consents, and subordination agreements. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 17–18)
What This Means (2024 FDD)
According to Bevaris Alliance's 2024 Franchise Disclosure Document, Section 16.11 of the Franchise Agreement outlines the brand's approval of franchisee transfers. This section stipulates that Bevaris Alliance retains the right to approve all transfers, subject to the provisions detailed within the Franchise Agreement. This means that a franchisee cannot simply sell or transfer their franchise to anyone without first obtaining Bevaris Alliance's consent.
Section 16.11 also lists the conditions for Bevaris Alliance's approval of a transfer. These conditions include the transferee being approved by Bevaris Alliance, payment of a transfer fee, and the transferee not being a competitor. Additionally, the franchisee's account must be current, and both the franchisee and transferee must sign releases and all required documents. Furthermore, lender consent and subordination agreements may be necessary for the transfer to be approved.
These stipulations are typical in franchise agreements, as they allow Bevaris Alliance to maintain control over who operates under their brand name and to ensure that any new franchisee meets their standards and financial obligations. Prospective franchisees should carefully review Section 16.11 of the Franchise Agreement to fully understand the requirements and potential obstacles involved in transferring their Bevaris Alliance franchise.