What happens upon the death or permanent incapacitation of an Aplus Developer or Owner?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
- 8.9 Transfer Upon Death or Incapacitation.
Upon the death or permanent incapacity (mental or physical) of the Developer or any Owner, the executor, administrator, or personal representative of such person shall transfer such interest to a third party approved by Franchisor within six months after such death or mental incapacity.
Such transfers, including, without limitation, transfers by devise or inheritance, shall be subject to the same conditions as an inter vivos transfer, except that the transfer fee shall be waived.
In the case of transfer by devise or inheritance, however, if the heirs or beneficiaries of any such person are unable to meet the conditions of this Section 8, the executor, administrator, or personal representative of the decedent shall transfer the decedent's interest to another party approved by Franchisor within six months, which disposition shall be subject to all the terms and conditions for transfer contained in this Agreement.
If the interest is not disposed of within such period, Franchisor may, at its option, terminate this Agreement, pursuant to Section 9.5.
Source: Item 22 — CONTRACTS (FDD page 68)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, Section 8.9 addresses the transfer of ownership upon death or permanent incapacitation of a Developer or Owner. In such an event, the executor, administrator, or personal representative is required to transfer the interest to a third party approved by Aplus within six months. This transfer is subject to the same conditions as a regular transfer, but the transfer fee is waived.
However, if the heirs or beneficiaries are unable to meet these conditions, the executor, administrator, or personal representative must transfer the interest to another party approved by Aplus within the same six-month period. This disposition is subject to all the standard transfer terms and conditions outlined in the agreement.
If the interest is not transferred within the specified six-month timeframe, Aplus retains the option to terminate the Development Agreement, as per Section 9.5. This clause ensures that Aplus maintains control over who operates and develops its franchises, even in unforeseen circumstances such as death or incapacitation, and provides a clear process for managing such transitions.