What factors does Bor Restoration consider when evaluating a proposed transferee?
Bor_Restoration Franchise · 2024 FDDAnswer from 2024 FDD Document
In determining the acceptability of the Proposed Transferee, we will consider, among other things, our then-current standards for new franchisees, including the net worth, creditworthiness, background, training, personality, reputation, and business experience of the Proposed Transferee, the terms and conditions of the Proposed Transfer, and any circumstances that would make the transfer contrary to our Reasonable Business Judgment or the best interests of the System.
- b.
We may meet with the Proposed Transferee and candidly discuss all matters relating to the Franchise Agreement and the Franchised Business.
In no case will you or a Proposed Transferee rely on us to review or evaluate any Proposed Transfer.
We will not be liable to you, the Proposed Transferee, or any other Person or entity relating to the Transfer.
Source: Item 23 — Receipts (FDD pages 40–202)
What This Means (2024 FDD)
According to Bor Restoration's 2024 Franchise Disclosure Document, when a franchisee proposes to transfer their franchise to a new owner, Bor Restoration evaluates several factors to determine the acceptability of the proposed transferee. These factors align with the standards Bor Restoration uses for new franchisees.
Bor Restoration considers the proposed transferee's net worth, creditworthiness, background, training, personality, reputation, and business experience. The franchisor will also assess the terms and conditions of the proposed transfer itself. Bor Restoration retains the right to reject a transfer if it believes the transfer would be contrary to its reasonable business judgment or the best interests of the Bor Restoration system.
Bor Restoration may meet with the proposed transferee to discuss the franchise agreement and the franchised business. However, the FDD stipulates that neither the franchisee nor the proposed transferee should rely on Bor Restoration to review or evaluate any proposed transfer, and Bor Restoration will not be liable to anyone regarding the transfer.