Does Bor Restoration consider a transfer by operation of law to be a 'Transfer'?
Bor_Restoration Franchise · 2024 FDDAnswer from 2024 FDD Document
A "Transfer" also includes (iv) a transfer as a gift to any Person; (v) a transfer resulting from a divorce, insolvency, or business-entity dissolution proceeding; (vi) by operation of law; (vii) in the event of the death, transfer or disposition by will or under the laws of intestate succession; (viii) by the declaration of or transfer in trust; (ix) the pledge of any of interests described in this paragraph as a security interest; (ix) as the result of any merger, stock redemption, consolidation, reorganization, recapitalization or other transfer of control of you; and, (xi) by any other direct or indirect means.
Source: Item 23 — Receipts (FDD pages 40–202)
What This Means (2024 FDD)
According to Bor Restoration's 2024 Franchise Disclosure Document, a 'Transfer' includes a transfer by operation of law. This means that if the ownership of the Bor Restoration franchise changes due to legal processes, such as court orders or legal judgments, it is considered a transfer under the franchise agreement.
This is significant for prospective franchisees because any change in ownership, even if involuntary due to legal reasons, is subject to the franchisor's approval. Bor Restoration retains the right to approve or deny the transfer, potentially impacting the franchisee's ability to pass the business to family members or other parties through legal means.
Furthermore, Bor Restoration may impose transfer fees and other conditions, as outlined in the franchise agreement, even in cases of transfer by operation of law. Therefore, franchisees need to understand the implications of these transfer provisions and how they might affect the future of their Bor Restoration franchise.