What written documentation must a Bor Restoration franchisee provide to Bor Restoration when proposing a transfer?
Bor_Restoration Franchise · 2024 FDDAnswer from 2024 FDD Document
- c.
As a condition of any Transfer otherwise permitted under this Franchise Agreement, you agree as follows,
i. you will notify us of a Proposed Transfer by sending written notice to us and enclosing a copy of the written offer from the Proposed Transferee;
vi. the terms and conditions of the Proposed Transfer must be provided in writing to us;
Source: Item 23 — Receipts (FDD pages 40–202)
What This Means (2024 FDD)
According to Bor Restoration's 2024 Franchise Disclosure Document, a franchisee proposing a transfer must provide specific written documentation to Bor Restoration. The franchisee must notify Bor Restoration of the proposed transfer in writing, including a copy of the written offer from the proposed transferee. Additionally, the franchisee must provide the terms and conditions of the proposed transfer in writing to Bor Restoration.
This requirement ensures that Bor Restoration has a clear understanding of the transfer terms and the qualifications of the proposed transferee. Bor Restoration will assess the proposed transferee based on its current standards for new franchisees, considering factors such as net worth, creditworthiness, background, training, personality, reputation, and business experience. Bor Restoration also evaluates the transfer's terms and conditions to ensure they align with the best interests of the Bor Restoration system.
Furthermore, the franchisee must confirm that they are in compliance with the Franchise Agreement and not in default at the time of the transfer request. All accounts payable and other monetary obligations to Bor Restoration or its affiliates must be paid in full, and all required reports, financial statements, and other documents must be submitted on time. These conditions ensure that the franchisee is in good standing before the transfer can proceed.
It is important to note that the proposed transferee, if approved, must sign Bor Restoration's then-current form of the franchise agreement, which may contain significantly different terms, covenants, and conditions. The proposed transferee must also attend training and pay any applicable tuition and cover their travel, room, and board expenses for such training. Additionally, either the proposed transferee or the current franchisee must pay the transfer fee upon the execution of the franchise agreement by the proposed transferee.