Are transfers of a Canine Dimensions franchise interest by devise or inheritance subject to the same conditions as other transfers?
Canine_Dimensions Franchise · 2025 FDDAnswer from 2025 FDD Document
east a 30% equity interest in Franchisee (any Transfer must be approved by Franchisor as provided in this Article 13; and
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. If Franchisee's executor, administrator, or personal representative is unable to find a replacement person to operate the Franchised Business as contemplated in this Section 13.6, to prevent any interruption of business of the Franchised Business and any injury to the goodwill and reputation of the Franchised Business, Franchisor will have the right (but not the obligation) to operate the Franchised Business until Franchisee's executor, administrator, or personal representative is able to take the steps set forth above. If Franchisor operates the Franchised Business, Franchisor shall have the right to collect and pay from the revenues of the Franchised Business all expenses relating to the operation of the Franchised Business including, without limitation, Royalty Fees and Internet Advertising payments, employee salaries, reimbursement of Franchisor' expenses incurred in connection with such operation, and a management fee of three hundred and fifty dollars ($350) per day. Franchisee shall indemnify and hold Franchisor harmless from any and all claims arising f
Source: Item 22 — CONTRACTS (FDD page 36)
What This Means (2025 FDD)
According to Canine Dimensions's 2025 Franchise Disclosure Document, transfers of a franchise interest by devise or inheritance are generally subject to the same conditions as other transfers. Specifically, these transfers must adhere to the conditions outlined in Section 13.2.2 of the franchise agreement.
However, the FDD outlines some flexibility if the heirs or beneficiaries are unable to meet these conditions. In such cases, the personal representative of the deceased franchisee has a reasonable time to dispose of the deceased's interest in the franchise, but this disposition remains subject to all the terms and conditions for transfers contained in the agreement.
If the interest is not disposed of within a reasonable timeframe, Canine Dimensions has the right to terminate the agreement. To prevent any interruption of the business and protect the goodwill of the franchise, Canine Dimensions also has the option (but not the obligation) to operate the franchised business until the franchisee's executor can take the necessary steps. If Canine Dimensions chooses to operate the business, it can collect revenues and pay expenses, including royalty fees, internet advertising payments, employee salaries, and a management fee of $350 per day, from the business's revenues. The franchisee's estate is required to indemnify Canine Dimensions against any claims arising from Canine Dimensions's operation of the business during this period.