When transferring an Advanced Mobile Iv And Amiv franchise, what standards must the transferee meet?
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, accounting, credit check, and investigation expenses that result from the transfer.
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- You will pay us a 10% commission on the gross transfer price, if we obtain the transferee for you.
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- The transferee will execute all documents we then require of new franchisees. This includes a new franchise agreement in the form we then are using. The new franchise agreement may contain economic and general terms that are materially different from those contained in this Agreement. The term of the new agreement will be for the unexpired term of this Agreement
35 – ADVANCED MOBILE IV FRANCHISE AGREEMENT
or for a new full term as we will elect.
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 company has subjective standards for selecting franchise owners, and these standards extend to transferees. The franchisor must approve the transfer, and the transferee must meet several conditions.
First, the transferee must assume all of the existing franchisee's obligations under the Franchise Agreement. The original franchisee remains responsible for maintaining confidentiality and non-competition agreements. Second, the current franchisee must settle all debts related to the franchise and cannot be in breach of any agreements with Advanced Mobile Iv And Amiv.
Third, the transferee must complete the training programs that Advanced Mobile Iv And Amiv requires for new franchisees or otherwise demonstrate the ability to successfully operate the franchise. The transferee must also pay the then-current transfer fee, which is currently $5,000 plus applicable taxes. If Advanced Mobile Iv And Amiv finds the transferee, the franchisee must pay Advanced Mobile Iv And Amiv a commission of 10% of the gross transfer price. Finally, the transferee must execute all documents required of new franchisees, including a new franchise agreement, which may have different terms than the original agreement. The transferee must also meet Advanced Mobile Iv And Amiv's standards for character, financial capacity, and experience required of a new or renewing franchisee, and provide any information required to prove they meet these standards.