Under what conditions is a Bevaris Alliance franchisee prohibited from assigning rights or licenses?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
23. Assignment
- 23.1 This agreement is personal to the Franchisee and the Individual, who, subject to clause 16 and clause 17 may not, without the prior written consent of the Franchisor (such consent not to be unreasonably conditioned, withheld or delayed), assign, transfer, mortgage, charge, declare a trust of, sub-contract, delegate or deal in any other manner with:
- (a) this agreement or any of their rights 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 t
Source: Item 23 — RECEIPT (FDD pages 22–88)
What This Means (2024 FDD)
According to the 2024 Bevaris Alliance Franchise Disclosure Document, a franchisee is generally restricted from assigning their rights or licenses under the franchise agreement without prior written consent from Bevaris Alliance. Specifically, the agreement is personal to both the franchisee and any individual guarantor, and they cannot assign, transfer, mortgage, charge, declare a trust of, sub-contract, delegate, or otherwise deal with the agreement, their rights, or the franchise business itself without obtaining written consent from Bevaris Alliance.
This requirement means that a Bevaris Alliance franchisee cannot simply sell or transfer their franchise to someone else without the franchisor's approval. This provision protects Bevaris Alliance by ensuring that any new franchisee meets their standards and is capable of maintaining the brand's reputation. The franchisor's consent cannot be unreasonably withheld, conditioned, or delayed, which provides some assurance to the franchisee that a legitimate transfer request will be considered fairly.
Bevaris Alliance, however, retains the right to assign or transfer its own obligations or benefits under the agreement at any time. If Bevaris Alliance assigns its rights, the franchisee must continue to fulfill their obligations to the new assignee once they receive written notice of the assignment. This clause ensures that Bevaris Alliance can freely manage its business and transfer its interests without requiring the franchisee's consent.
In practical terms, a Bevaris Alliance franchisee looking to sell their business or transfer their franchise agreement must first seek and obtain written approval from Bevaris Alliance. This process likely involves submitting an application with information about the proposed transferee, who will then be evaluated by Bevaris Alliance. The franchisor may impose conditions to protect its brand and goodwill during the transfer process.