Until when should a Bevaris Alliance franchisee discharge their obligations to the franchisor after an assignment?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
- 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 Bevaris Alliance's 2024 Franchise Disclosure Document, if Bevaris Alliance assigns the franchise agreement, the franchisee and the individual guarantor are required to continue fulfilling their obligations under the agreement to Bevaris Alliance. This obligation lasts until they receive written notice of the assignment.
This means that even if Bevaris Alliance transfers its rights and obligations to another party, the franchisee must continue to perform as if the agreement were still with Bevaris Alliance until formal written notification of the assignment is received. This protects Bevaris Alliance during the transition period and ensures continuity of the franchise operation.
After the franchisee receives written notice of the assignment, their obligations shift to the new assignee, who then has the right to enforce the agreement. However, the franchisee's liability to the assignee cannot exceed their original liability to Bevaris Alliance. This provision ensures a smooth transition of responsibilities and rights in case of an assignment by Bevaris Alliance.