Are there any exceptions to the restriction on transferring shares or assets of the Bevaris Alliance franchise without following the outlined procedures?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
16.1 Restrictions on sale of franchise business. No transfer of any shares in the Franchisee by the Individual or of the Franchisee's Business or any material part of the assets, rights or properties comprising the Franchisee's Business, other than sales to Customers in the normal course by the Franchisee or the creation of any encumbrance over the shares in the Franchisee by the Individual or over any part of the Franchisor's Business by the Franchisor or Individual may take place otherwise than in accordance with this clause 16 and clause 17.
16.2 Share transfer notice. If the Individual wishes to transfer its shares in the Franchisee (Sale Shares) to a third party and has received an offer from a bona fide third-party purchaser for the Sale Shares, the Individual must first give a Transfer Notice to the Franchisor (giving details of the proposed transfer including):
(a) the name of the proposed purchaser; and
(b) the price (in cash) that the proposed purchaser has offered to pay for the Sale Shares (Proposed Sale Price).
Source: Item 23 — RECEIPT (FDD pages 22–88)
What This Means (2024 FDD)
According to Bevaris Alliance's 2024 Franchise Disclosure Document, there are specific restrictions on the sale of the franchise business. A franchisee cannot transfer shares in the Franchisee, the Franchisee's Business, or any significant assets without adhering to the procedures outlined in Clause 16 and Clause 17 of the agreement. However, there are exceptions for sales to customers in the normal course of business and the creation of encumbrances over the shares in the Franchisee by the Individual or over any part of the Franchisor's Business by the Franchisor or Individual.
If the Individual wishes to transfer shares, they must provide a Transfer Notice to Bevaris Alliance. This notice should include the name of the proposed purchaser and the cash price offered for the shares. This ensures Bevaris Alliance is informed and has the opportunity to assess the proposed transfer.
These restrictions and exceptions are typical in franchising to maintain brand consistency and control over who operates a Bevaris Alliance franchise. Franchisees should carefully review Clauses 16 and 17 in the franchise agreement to fully understand the conditions under which they can transfer their business or shares.