Within what timeframe after the death or disability of a Bevaris Alliance franchisee must the franchise be assigned to an approved transferee?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| which must be approved by us. | ||
| l. Bevaris approval of transfer | Section | We have the right to approve all transfers, which shall be |
| by franchisee | 16.11 | subject to the provisions of the Franchise Agreement. |
| m. Conditions for Bevaris approval of transfer | Section 16.11 | Transferee approved by us, transfer fee paid, transferee not competitor, your account is current, you sign a release, transferee signs all documents, lender consents, and subordination agreements. |
| n. Bevaris’ right of first refusal to acquire franchisee’s business | Section 16.3 | Bevaris can match any offer for the purchase of Your franchise at Bevaris’ option. |
| o. Bevaris’ option to purchase Your business | Section 16.7 | Upon transfer, fair market value (but no value for goodwill), legal compliance, no assumption of your liabilities. |
| p. Death or disability of | Section 17 | Franchise may be assigned by estate to approve transferee |
| franchisee | in three months. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 17–18)
What This Means (2024 FDD)
According to Bevaris Alliance's 2024 Franchise Disclosure Document, in the event of the death or disability of a franchisee, the franchise may be assigned by the estate to an approved transferee within three months. This means that the franchisee's estate has a limited time frame to find a suitable and approved buyer for the franchise.
This provision is important for prospective Bevaris Alliance franchisees as it clarifies the process and timeline for transferring the franchise in unforeseen circumstances such as death or disability. The three-month window provides a defined period for the estate to manage the transfer, ensuring business continuity and potentially preserving the value of the franchise.
It is important to note that the transferee must be approved by Bevaris Alliance. This approval process likely involves assessing the transferee's financial capabilities, business experience, and overall suitability to operate the franchise. The franchisor's approval is a standard practice in franchising to maintain brand standards and ensure the continued success of the franchise network. Franchisees should familiarize themselves with the specific transfer requirements outlined in Section 16.11 of the Franchise Agreement, as referenced in the table, to understand the conditions for transfer approval.