What triggers the right of the Bevaris Alliance franchisor to buy shares of an individual franchisee?

According to the 2024 Bevaris Alliance Franchise Disclosure Document, the franchisor has the right to buy shares of an individual franchisee upon the death of the individual. Specifically, if the individual franchisee dies during the term of the franchise agreement, their personal representatives must inform Bevaris Alliance within 24 hours of the death. Within 30 days of the death, the personal representatives must offer to sell the individual's shares to Bevaris Alliance by serving a Transfer Notice.

This transfer process follows specific procedures outlined in clause 16.2, 16.3, 16.4, and 16.2 of the franchise agreement, with some modifications. References to the individual in those clauses are considered references to the individual's personal representatives. Similarly, references to a third-party purchaser are considered references to Bevaris Alliance or beneficiaries of the shares, either through the individual's will or intestacy rules. If the beneficiaries do not want to hold the shares, the references are to any other third party specified in the notice by the personal representatives.

This clause ensures that Bevaris Alliance has the first option to maintain control over the franchise in the event of the franchisee's death, allowing them to either purchase the shares themselves or approve another suitable party. This is a fairly standard clause in franchise agreements to ensure business continuity and brand consistency.