Can Advanced Mobile Iv And Amiv transfer the franchise agreement?
Advanced_Mobile_Iv_And_Amiv Franchise · 2023 FDDAnswer from 2023 FDD Document
7 TRANSFER
7.1 Sale or Assignment.
A. Your rights and obligations under this Agreement are exclusive to you. Whether voluntarily or involuntarily, neither you, your owners, partners nor others claiming an interest in the Franchise will sell, transfer, assign, encumber, give, lease, or sublease, or allow any other person to conduct business in or through (collectively called "transfer") the whole or any part of: this Agreement, the Franchise, substantial assets of the Franchise business, or ownership or control of you or to fractionalize any of the rights granted to you pursuant to this Agreement. Any attempted transfer without our prior written consent will be a breach of this Agreement. Our consent will not be unreasonably withheld. We will not be obligated to consent to any transfer before the date the Franchise opens for business. We will not be obligated to consent to any transfer to a competitor to the Advanced Mobile IV system.
Because we will have a strong and vested interest in the financial viability and ongoing management abilities of the transferee, we need not consent 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:
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, the franchise agreement contains specific stipulations regarding the transfer of rights and obligations. The agreement states that the franchisee's rights and obligations are exclusive to them. The franchisee is restricted from selling, transferring, assigning, encumbering, giving, leasing, or subleasing the agreement, the franchise, substantial assets of the franchise business, or ownership or control of the franchisee, or allowing any other person to conduct business in or through these assets without prior written consent from Advanced Mobile Iv And Amiv. Attempting to transfer any of these without consent constitutes a breach of the agreement.
Advanced Mobile Iv And Amiv states that it will not unreasonably withhold consent for a transfer. However, Advanced Mobile Iv And Amiv is not obligated to consent to any transfer before the franchise opens for business or to a competitor of the Advanced Mobile IV system. Advanced Mobile Iv And Amiv also need not consent if it reasonably believes the purchase price is excessive or that the transferee's business operations might not be beneficial on a cash flow or financial basis.
Advanced Mobile Iv And Amiv emphasizes that the agreement is entered into based on the character, skill, attitude, business ability, and financial capacity of the franchisee. The consent to a transfer remains a subjective determination by Advanced Mobile Iv And Amiv and will include conditions that Advanced Mobile Iv And Amiv must approve before the transfer's effective date.