What debts must be paid before Advanced Mobile Iv And Amiv will consent to a franchise transfer?
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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- You will pay all ascertained or liquidated debts concerning the Franchise. You may not be in breach of this Agreement or any other agreement between the parties. Our consent to the transfer will not constitute a waiver of any claims we may have against you.
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- The transferee will pay for and complete to our exclusive satisfaction the training programs we then require of new franchisees or otherwise show to our satisfaction sufficient ability to successfully operate the Franchise.
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- Pay to us the then-current Transfer Fee, currently $5,000 plus applicable taxes**,** to reimburse us for our reasonable legal, acco
Source: Item 23 — RECEIPTS (FDD pages 54–202)
What This Means (2023 FDD)
According to Advanced Mobile Iv And Amiv's 2023 Franchise Disclosure Document, if a franchisee wants to transfer their franchise, they must meet certain financial obligations. Specifically, the franchisee must pay all ascertained or liquidated debts concerning the franchise. This means any debts that have been clearly determined and finalized in terms of amount and responsibility must be settled before the transfer can proceed.
Additionally, the franchisee cannot be in breach of the Franchise Agreement or any other agreement between the franchisee and Advanced Mobile Iv And Amiv. Even if the franchisee meets these conditions, Advanced Mobile Iv And Amiv's consent to the transfer does not constitute a waiver of any claims Advanced Mobile Iv And Amiv may have against the franchisee. This means that even after the transfer, Advanced Mobile Iv And Amiv retains the right to pursue any outstanding claims against the original franchisee.
Furthermore, the franchisee is responsible for paying a transfer fee. The FDD states that the current transfer fee is $5,000, plus applicable taxes. This fee is intended to reimburse Advanced Mobile Iv And Amiv for the expenses they incur during the transfer process, such as legal, accounting, credit check, and investigation costs. In addition to the transfer fee, if Advanced Mobile Iv And Amiv obtains the transferee for the franchisee, the franchisee will pay Advanced Mobile Iv And Amiv a 10% commission on the gross transfer price.
These conditions ensure that Advanced Mobile Iv And Amiv maintains control over who becomes a franchisee and that all outstanding financial matters are resolved before a transfer is completed. It also protects Advanced Mobile Iv And Amiv's interests by ensuring they are compensated for their costs and retain the right to pursue any unresolved claims.