What claims are released by the franchisee when transferring an Advanced Mobile Iv And Amiv franchise?
Advanced_Mobile_Iv_And_Amiv Franchise · 2023 FDDAnswer from 2023 FDD Document
sent to any transfer if we reasonably believe the purchase price is excessive or if we believe based upon a review of the transferee's operational and business plans that the transferee's business operations might not be beneficial on a cash flow or financial basis.
We enter this Agreement, in part, in reliance upon the individual or collective character, skill, attitude, business ability and financial capacity of you (or your shareholders, members or partners, if you are a corporation, limited liability company, partnership or other entity).
You recognize that there are many subjective factors that comprise the process by which we select a suitable franchise owner. Our consent to a transfer by you will remain a subjective determination and will include, but not be limited to the following conditions which we must approve before the effective date of a transfer:
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- The transferee must assume your Franchise obligations. You will remain bound by your covenants in this Agreement to not disclose confidential information and to not compete with us or our franchisees.
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Source: Item 23 — RECEIPTS (FDD pages 54–202)
What This Means (2023 FDD)
The 2023 Advanced Mobile IV and AMIV Franchise Agreement outlines specific conditions related to franchisee transfers. The franchisor's consent to a transfer is a subjective determination that includes several conditions that must be approved before the transfer's effective date.
Specifically, the franchisee remains bound by their covenants in the Agreement to not disclose confidential information and to not compete with Advanced Mobile Iv And Amiv or its franchisees. The franchisee must also pay all ascertained or liquidated debts concerning the franchise and cannot be in breach of the Agreement or any other agreement between the parties. The franchisor's consent to the transfer does not constitute a waiver of any claims they may have against the franchisee.
In addition to these conditions, the franchisee will be required to enter into a release. Whenever the Agreement requires that the franchisee enter into a release, such as for a transfer, the release will be in a form substantially similar to the one provided in the franchise agreement.