Does Bor Restoration have any restrictions on assigning its contract?
Bor_Restoration Franchise · 2024 FDDAnswer from 2024 FDD Document
| PROVISION | SECTION IN | SUMMARY |
|---|---|---|
| j. Assignment of contract by | 9 | No restriction on the franchisor's right to assign. |
| franchisor | 140 restriction on the franchisor saight to assign. | |
| k. "Transfer" by franchisee - | 9 | Sale, assignment, gift, pledge, mortgage, transfer because of dissolution of |
| defined | marriage, civil union or partnership, or other disposition of any part of the Franchise Agreement, ownership of the franchisee or the Business. | |
| 1. Franchisor approval of transfer | 9 | Transferee has had a background check and has the necessary financial |
| by franchisee | resources. We have a 30-day right of first refusal; the transferee pays for | |
| m. Conditions for franchisor | 9 | training (Item 6). Must be in Compliance; must pay a fee; must not be in breach; new |
| approval of transfer | 9 | franchisee must qualify; you must have no outstanding defaults or money |
| approvar of transfer | owed; you must provide the terms of the proposed transfer to us; the new franchisee must sign the current Franchise Agreement; new franchisee must attend training; and, you must have signed release. |
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 33–35)
What This Means (2024 FDD)
According to Bor Restoration's 2024 Franchise Disclosure Document, there are no restrictions on Bor Restoration's right to assign the franchise agreement. However, if a franchisee wants to transfer their interest in the franchise, this is defined as a "transfer" which includes sale, assignment, gift, pledge, mortgage, transfer because of dissolution of marriage, civil union or partnership, or other disposition of any part of the Franchise Agreement, ownership of the franchisee or the Business.
If a Bor Restoration franchisee wishes to transfer their franchise, the potential transferee will undergo a background check and must demonstrate the necessary financial resources. Bor Restoration retains a 30-day right of first refusal, allowing them to acquire the franchise on the same terms as the proposed transfer. The transferee is responsible for covering the costs of training, as outlined in Item 6 of the FDD.
To gain approval for a transfer, a Bor Restoration franchisee must be in compliance with the franchise agreement, not be in breach of the agreement, and have no outstanding defaults or money owed to Bor Restoration. The new franchisee must meet Bor Restoration's qualification standards, sign the current Franchise Agreement, and attend training. Additionally, the transferring franchisee must sign a release. These conditions ensure that any transfer maintains the standards and quality of the Bor Restoration brand.