Under the Advanced Mobile Iv And Amiv agreement, what is the definition of a 'Permitted Transferee'?
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)
Based on the 2023 Franchise Disclosure Document, Advanced Mobile Iv And Amiv's franchise agreement outlines specific conditions under which a franchisee can transfer their rights and obligations. A 'Permitted Transferee' is not explicitly defined in the provided excerpts. However, the document details the conditions and requirements that a potential transferee must meet to be approved by Advanced Mobile Iv And Amiv.
To gain approval from Advanced Mobile Iv And Amiv, the transferee must assume all of the existing franchise obligations. The original franchisee remains responsible for upholding the confidentiality and non-compete agreements outlined in the original contract. All outstanding debts and any breaches of existing agreements must be resolved before the transfer can proceed. The transferee is also required to complete Advanced Mobile Iv And Amiv’s training programs to demonstrate their ability to successfully manage the franchise.
Additionally, the transferee must meet Advanced Mobile Iv And Amiv's standards for character, financial capacity, and relevant experience. The franchisor retains the right to evaluate the transferee based on subjective factors. The transferee will also need to execute all the documents that Advanced Mobile Iv And Amiv requires of new franchisees, including a new franchise agreement which may have different terms than the original agreement. The franchisee will also need to pay a $5,000 transfer fee, plus applicable taxes, to cover Advanced Mobile Iv And Amiv's expenses for the transfer process.
A franchisee looking to transfer their franchise should seek clarification from Advanced Mobile Iv And Amiv regarding the specific criteria and documentation required for a 'Permitted Transferee' to ensure a smooth transfer process. It would be prudent to discuss all potential transfer scenarios with Advanced Mobile Iv And Amiv before making any commitments.