Is the Transfer Fee payable by a Bevaris Alliance franchisee to the Franchisor?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
- 16.14 Transfer Fee. Any transfer under this clause 16 shall be subject to a Transfer Fee. Fifty percent of the Transfer Fee shall be due and payable upon Franchisee's providing of notice of the proposed transfer to Franchisor pursuant to clauses 16.2 or 16.6 of this agreement, and the remaining fifty percent of the Transfer Fee shall be due and payable upon Franchisor's execution of the new agreement with the transferee.
Source: Item 23 — RECEIPT (FDD pages 22–88)
What This Means (2024 FDD)
According to the 2024 Bevaris Alliance Franchise Disclosure Document, a transfer fee is required for any transfer under clause 16 of the franchise agreement. The transfer fee is equal to 50% of the then-current initial franchise fee.
The FDD specifies the payment schedule for the transfer fee. Fifty percent of the transfer fee is due when the franchisee provides notice of the proposed transfer to Bevaris Alliance, as outlined in clauses 16.2 or 16.6 of the agreement. The remaining fifty percent is due upon Bevaris Alliance's execution of the new agreement with the transferee.
This means that a Bevaris Alliance franchisee looking to transfer their franchise will need to budget for this fee, understanding that half is due at the start of the transfer process and the other half upon final approval and agreement with the new franchisee.