What standards must the proposed purchaser meet for a transfer of a Bevaris Alliance franchise to be approved?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
16.11 Transfer criteria. Any transfer to a third party pursuant to this clause 16 shall be subject to the following criteria being satisfied:
(a) the Franchisor having given its written consent to the transfer (not to be unreasonably withheld if the remainder of the criteria set out in this clause 16.11 are satisfied);
(b) the Franchisee and the Individual have both complied with all the terms and conditions of this agreement;
(c) the proposed purchaser (and, in the case of an entity, includes its shareholders and directors) meets the Franchisor's current minimum standards with respect to prior business experience, financial standing and recruitment criteria;
(d) all monies due to the Franchisor have been paid;
(e) the proposed purchaser undertakes and passes initial training;
Source: Item 23 — RECEIPT (FDD pages 22–88)
What This Means (2024 FDD)
According to the 2024 Bevaris Alliance Franchise Disclosure Document, a transfer to a third party is contingent upon meeting specific criteria. First, Bevaris Alliance must provide written consent for the transfer, which will not be unreasonably withheld if the other criteria are met. Both the current franchisee and the individual involved must have adhered to all the terms and conditions outlined in the franchise agreement.
Critically, the proposed purchaser, including its shareholders and directors if the purchaser is an entity, must meet Bevaris Alliance's current minimum standards regarding prior business experience, financial standing, and recruitment criteria. All outstanding monies owed to Bevaris Alliance must be paid in full. Finally, the proposed purchaser is required to undertake and successfully complete initial training.
These stipulations ensure that any new franchisee maintains the standards and financial stability expected by Bevaris Alliance. Prospective franchisees should carefully review these requirements and discuss them with Bevaris Alliance to fully understand the expectations for a transfer.