In a transfer of shares or assets to Bevaris Alliance, who provides the warranty?

According to the 2024 Bevaris Alliance Franchise Disclosure Document, in the event of a transfer of shares or assets to Bevaris Alliance, the warranty is provided jointly and severally by the Individual and the Franchisee. This warranty ensures that the shares or assets are sold with full title guarantee and are free from any encumbrances.

This means that both the individual associated with the franchise (likely the owner or a key manager) and the franchisee entity itself are responsible for guaranteeing clear ownership and absence of liens or claims on the transferred assets. The term "joint and several" means that Bevaris Alliance can pursue either the individual or the franchisee (or both) for any breach of this warranty.

For a prospective Bevaris Alliance franchisee, this clause highlights the importance of ensuring that all assets and shares are free of any legal issues before a transfer. It also underscores the need for the franchisee and the individual involved to understand their shared responsibility in providing this warranty to Bevaris Alliance. This requirement aims to protect Bevaris Alliance from inheriting any legal or financial problems associated with the transferred assets or shares.