Does C3 Wellness Spa have any restrictions on assigning the Multi-Unit Development Agreement?
C3_Wellness_Spa Franchise · 2024 FDDAnswer from 2024 FDD Document
or an agreement granting the right to exercise or control the |
| l. | Franchisor's approval of transfer | 14.B. | Transfers require our prior written consent, which may be |
|---|---|---|---|
| by franchisee | granted or withheld in our discretion. | ||
| m. | Conditions for franchisor's approval of transfer | 14.C. | For approval of your transfer, you must provide us with 30 days prior written notice of the proposed transfer; you and your Owners must not have defaulted in your obligations under the Franchise Agreement and all other agreements with us; you and your Owners must be in compliance with your obligations under the Franchise Agreement and all other agreements with us; the transferee must agree to be bound by all of the terms and provisions of the Franchise Agreement; the transferee's owners and their spouses must personally guarantee all of the terms and provisions of the Franchise Agreement; you and your Owners and their spouses must sign a general release in favor of us; |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 43–50)
What This Means (2024 FDD)
According to C3 Wellness Spa's 2024 Franchise Disclosure Document, the transfer of a franchise requires the franchisor's prior written consent, which may be granted or withheld at their discretion.
For a franchisee to get approval for a transfer, they must provide C3 Wellness Spa with 30 days prior written notice of the proposed transfer. Furthermore, the franchisee and their owners must not be in default of their obligations under the Franchise Agreement and all other agreements with C3 Wellness Spa, and they must be in compliance with all their obligations.
The transferee must agree to be bound by all the terms and provisions of the Franchise Agreement, and the transferee's owners and their spouses must personally guarantee all the terms and provisions of the Franchise Agreement. The franchisee, their owners, and their spouses must sign a general release in favor of C3 Wellness Spa. The transfer must provide for the assignment and/or ownership of the approved location for the Franchised Business, and the transferee's continued use and occupancy of such location throughout the term of the Franchise Agreement. Finally, the assets of the Franchised Business must be transferred to the transferee.