Under what condition does clause 16.3 apply to a Bevaris Alliance franchise share transfer?

According to the 2024 Bevaris Alliance Franchise Disclosure Document, clause 16.3, which pertains to the Franchisor's purchase notice, becomes applicable when the Franchisor or the beneficiaries of the franchise do not wish to become the registered holders of the shares, and there is no third party involved in the share transfer. In such a scenario, the transfer notice is served without any reference to a third-party purchaser, triggering the provisions of clause 16.3.

This means that if the Individual (as defined in the agreement) dies or becomes incapacitated, and neither the Franchisor nor the beneficiaries want to take over the shares, and there isn't another buyer lined up, the process outlined in clause 16.3 will be followed. This clause allows Bevaris Alliance to give notice that it wishes to purchase the shares at the proposed sale price.

For a prospective franchisee, this is important because it outlines the procedure that will be followed in specific circumstances related to the transfer of shares. It ensures that there is a mechanism in place even when the typical scenario of a third-party purchaser does not exist, providing clarity on how the transfer will be handled. This clause protects the interests of both the franchisee and Bevaris Alliance by providing a structured approach to share transfer in complex situations.