What advance written notice must a Casiola franchisee provide to Casiola before a proposed transfer?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
| i. | Franchisee's obligations on termination/non-renewal | 6, 17 | You must: pay all sums that you owe to us under the Franchise Agreement and all other agreements with us; cease owning and operating the Franchised Business; cease representing yourself as a franchisee of ours; permanently cease using and/or accessing the System, the Licensed Marks, our confidential information, the Manuals, the Bookings and Management System, the Bookings and Management System Data, and the System Supplies; return the Manuals and all confidential information to us in the original form provided to you and document the destruction of all electronic files related to same; completely de-identify the location and/or facility associated with the Franchised Business; as requested by us, transfer to us all data, telephone listings, digital media, accounts, web listings and websites associated with the Franchised Business; and abide by the post-termination non competition covenants and restrictions. |
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| j. | Assignment of the contract by franchisor | 14.A. | No restriction on our right to assign. |
| k. | "Transfer" by franchisee definition | 14.B. | A transfer means and includes, whether voluntary or involuntary, conditional or unconditional, direct or indirect: (a) an assignment, sale, gift, transfer, pledge or sub-franchise; (b) the grant of a mortgage, charge, lien or security interest, including, without limitation, the grant of a collateral assignment; (c) a merger, consolidation, exchange of shares or other ownership interests, issuance of additional ownership interests or securities representing or potentially representing ownership interests, or redemption of ownership interests; and (d) a sale or exchange of voting interests or securities convertible to voting interests, or an agreement granting the right to exercise or control the exercise of the voting rights of any holder of ownership interests or to control the operations or affairs of Franchisee. |
| l. | Franchisor's approval of transfer by franchisee | 14.B. | Transfers require our prior written consent, which may be 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 must personally guarantee all of the terms and provisions of the Franchise Agreement; you and your Owners must sign a general release in favor of us; 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 |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 35–39)
What This Means (2024 FDD)
According to Casiola's 2024 Franchise Disclosure Document, a franchisee must provide Casiola with 30 days prior written notice before a proposed transfer of the franchise. This advance notice is a prerequisite for Casiola's approval of the transfer.
In addition to providing the required notice, the franchisee and their owners must not be in default of their obligations under the Franchise Agreement or any other agreements with Casiola. They must also be in full compliance with all terms of these agreements. The proposed transferee must agree to be bound by all the terms and provisions of the Franchise Agreement, and the transferee's owners must personally guarantee these terms.
Furthermore, the franchisee and their owners must sign a general release in favor of Casiola, which typically releases Casiola from any past, present, or future claims related to the franchise. The transfer must also ensure the assignment and/or ownership of the approved location for the Franchised Business, allowing the transferee to continue using and occupying the location. These conditions are typical in franchising to ensure the ongoing stability and compliance of the franchise system.