When transferring a Bevaris Alliance franchise, is it a condition of approval that the transferee is not a competitor?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| m. Conditions for Bevaris approval of transfer | Section 16.11 | Transferee approved by us, transfer fee paid, transferee not competitor, your account is current, you sign a release, transferee signs all documents, lender consents, and subordination agreements. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 17–18)
What This Means (2024 FDD)
According to Bevaris Alliance's 2024 Franchise Disclosure Document, the franchisor must approve any transfer of a franchise. One of the conditions for approval is that the transferee must not be a competitor of Bevaris Alliance. This requirement is detailed in Section 16.11 of the franchise agreement.
This condition means that if a franchisee wishes to sell their Bevaris Alliance franchise, the potential buyer cannot be someone who owns or operates a competing business. This is a fairly common practice in franchising, designed to protect the brand and prevent competitors from gaining access to Bevaris Alliance's business model, trade secrets, and customer base.
In addition to the transferee not being a competitor, other conditions for approval include the transferee being approved by Bevaris Alliance, payment of a transfer fee, ensuring the franchisee's account is current, obtaining a release from the franchisee, having the transferee sign all required documents, securing lender consent, and obtaining subordination agreements. A prospective franchisee should carefully review Section 16.11 of the Franchise Agreement to fully understand all the requirements for transferring a Bevaris Alliance franchise.