What triggers the Bevaris Alliance franchisee's obligation to discharge their duties to the assignee?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
and obligations under it (or any document referred to in it); or
- (b) the Franchisee's Business, or purport to do any of the same.
- 23.2 The Franchisor may, at any time, assign (absolutely or by way of security and in whole or in part), transfer, mortgage, charge or deal in any other manner with the benefit of any or all of any other party's obligations or any benefit arising under this agreement.
- 23.3 If there is an assignment pursuant to clause 23.2:
- (a) the Franchisee and Individual shall discharge their obligations under this agreement to the Franchisor until they receive written notice of the assignment;
- (b) the assignee may enforce this agreement as if it were a party to it, but the Franchisor shall remain liable for its obligations under this agreement;
- (c) the liability of the Franchisee and Individual to any assignee cannot be greater than their liability to the Franchisor;
Source: Item 23 — RECEIPT (FDD pages 22–88)
What This Means (2024 FDD)
According to the 2024 Bevaris Alliance Franchise Disclosure Document, a franchisee's obligation to fulfill their duties to an assignee is triggered upon receiving written notice of the assignment. Specifically, the franchisee and the individual (likely referring to a guarantor or controlling person) are required to continue discharging their obligations to Bevaris Alliance until they are formally notified in writing about the assignment.
This means that until the franchisee receives official written notice, they should continue to operate as if the original agreement with Bevaris Alliance is still in effect. This protects the franchisee from unknowingly breaching the agreement by following instructions from an unrecognized party. The assignee, after the assignment, has the right to enforce the agreement as if they were a direct party to it, but Bevaris Alliance remains liable for its own obligations under the agreement.
Furthermore, the liability of the franchisee and the individual to any assignee is capped at the extent of their original liability to Bevaris Alliance. This prevents the assignee from imposing greater obligations or liabilities than what was initially agreed upon. Bevaris Alliance also reserves the right to disclose necessary information about the agreement to a proposed assignee, but only after notifying the franchisee and the individual about the identity of the proposed assignee.