In a transfer of shares or assets to Bevaris Alliance, what warranty is included from the Individual and the Franchisee?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
- 16.13 Warranty. Any transfer of shares or assets to the Franchisor under this clause 16 shall be deemed to include a warranty from the Individual and the Franchisee on a joint and several basis that the shares or assets (as appropriate) are sold with full title guarantee and are free from encumbrances.
Source: Item 23 — RECEIPT (FDD pages 22–88)
What This Means (2024 FDD)
According to Bevaris Alliance's 2024 Franchise Disclosure Document, a transfer of shares or assets to Bevaris Alliance includes a warranty from both the Individual and the Franchisee. This warranty is provided on a joint and several basis, meaning both parties are responsible.
The warranty specifically states that the shares or assets are sold with full title guarantee. This means that the seller guarantees they have the legal right to transfer ownership of the shares or assets to Bevaris Alliance.
Additionally, the warranty ensures that the shares or assets are free from encumbrances. This means there are no outstanding claims, liens, or other restrictions on the shares or assets that could affect Bevaris Alliance's ownership or use of them. This clause aims to protect Bevaris Alliance from inheriting any hidden liabilities or disputes related to the transferred assets or shares.