Is the transfer fee waived for transfers upon death or incapacitation of an Aplus franchisee?
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, the transfer fee is waived upon the death or permanent incapacitation of the developer or owner. The executor, administrator, or personal representative is required to transfer the interest to a third party approved by Aplus within six months of the death or incapacitation.
This transfer is subject to the same conditions as a regular transfer, but with the transfer fee waived. However, if the heirs or beneficiaries cannot meet the conditions for transfer, the executor, administrator, or personal representative must transfer the interest to another party approved by Aplus within six months, subject to all transfer terms and conditions outlined in the agreement.
If the interest is not transferred within the specified six-month period, Aplus has the option to terminate the agreement. This provision ensures that the Aplus franchise continues to be operated by a qualified and approved party even in the event of the original franchisee's death or incapacitation, while also providing some relief to the franchisee's estate by waiving the transfer fee.