Is the Casiola agreement binding on the executors of the parties involved?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
Business or to any creditor of Franchisee for any products, materials, supplies or services purchased by Franchisee's Casiola Business. Franchisor has the right to charge a reasonable fee for such management services and may cease to provide management services at any time. Notwithstanding the foregoing, if Franchisee is a Corporate Entity and the Managing Owner is the only Owner of Franchisee, then Article 14.D.(1) shall apply as if the Managing Owner were the sole individual Franchisee.
- (3) Upon the death of Franchisee or any Owner, the executor, administrator, conservator or other personal representative of that deceased person must transfer his interest to a person Franchisor approves within a reasonable time, not to exceed 12 months from the date of death.
- (4) If Franchisee is an individual, then in the event of the death or permanent disability of Franchisee, this Agreement may be Transferred to any designated person, heir or beneficiary without the payment of the Transfer Fee.
Source: Item 23 — RECEIPTS (FDD pages 47–209)
What This Means (2024 FDD)
According to Casiola's 2024 Franchise Disclosure Document, in the event of the death of the franchisee or any owner, the executor, administrator, conservator, or other personal representative of the deceased person is required to transfer the deceased's interest to a Casiola-approved person within 12 months from the date of death. This indicates that the Casiola franchise agreement does have implications for the executors or representatives of a deceased franchisee or owner.
Specifically, the agreement does not automatically terminate upon the death of the franchisee or owner. Instead, it mandates that the estate take action to transfer the franchise to a qualified, Casiola-approved individual. This ensures the continued operation of the Casiola business and adherence to the franchise agreement's terms, even after the original franchisee's passing.
However, if the Casiola business is not being managed by a Franchisor approved Managing Owner (as applicable) within 30 days after such death or permanent disability, Casiola is authorized to immediately appoint a manager to maintain the operations of Franchisee's Casiola Business for, and on behalf of, Franchisee at Franchisee's sole costs until an approved Managing Owner is able to assume the management and operation of Franchisee's Casiola Business. Franchisor's appointment of a manager for Franchisee's Casiola Business does not relieve Franchisee of its obligations under this Agreement, including this Article 14.D., or constitute a waiver of Franchisor's right to terminate this Agreement pursuant to Article 16.