What is considered a 'reasonable time' for completing an approved transfer of a Canine Dimensions franchise after death or disability, as mentioned in Section 13.6?
Canine_Dimensions Franchise · 2025 FDDAnswer from 2025 FDD Document
13.6.3 within six (6) months after such death or disability, Transfer the decedent's or disabled party's interest to a third party approved by Franchisor. Such Transfers, including, without limitation, Transfers by devise or inheritance, shall be subject to the same conditions as set forth in Section 13.2.2. In the case of Transfer by devise or inheritance, however, if the heirs or beneficiaries of any such person are unable to meet the conditions in this Section 13.6, the personal representative of the deceased Franchisee shall have a reasonable time to dispose of the deceased's interest in the Franchise, which disposition shall be subject to all the terms and conditions for Transfers contained in this Agreement. If the interest is not disposed of within a reasonable time, Franchisor may terminate this Agreement.
Source: Item 22 — CONTRACTS (FDD page 36)
What This Means (2025 FDD)
According to Canine Dimensions' 2025 Franchise Disclosure Document, Section 13.6.3 addresses the timeframe for transferring a franchise after death or disability. It states that the transfer of the deceased's or disabled party's interest to a Franchisor-approved third party must occur within six months of the event. However, in cases of transfer by devise or inheritance, if the heirs or beneficiaries cannot meet the conditions, the personal representative has a 'reasonable time' to dispose of the interest.
The FDD does not explicitly define what constitutes a 'reasonable time'. Instead, it indicates that if the interest is not disposed of within a 'reasonable time', Canine Dimensions has the right to terminate the Franchise Agreement. This lack of a clear definition introduces ambiguity and potential risk for the franchisee's estate or beneficiaries.
Given this ambiguity, a prospective Canine Dimensions franchisee should seek clarification from the franchisor regarding the interpretation of 'reasonable time'. Understanding the factors Canine Dimensions considers when determining a 'reasonable time' can help the franchisee's estate plan effectively and avoid potential disputes or termination of the franchise agreement after death or disability. This is a crucial point to address during due diligence to ensure a smooth transition and protect the franchisee's investment.