Does the Casiola Franchisee need Franchisor approval to transfer the agreement due to dissolution of a Corporate Entity?

According to Casiola's 2024 Franchise Disclosure Document, if the franchisee is a corporate entity, the remaining owners must appoint a new Managing Owner approved by the franchisor within 30 days of the Managing Owner's death or permanent disability. This implies that a transfer of the franchise agreement might be necessary in the event of the dissolution of a corporate entity, and such a transfer would require the franchisor's approval.

Casiola requires that the proposed transferee, including its owners if it's a corporate entity, must be of good moral character, possess sufficient business experience, aptitude, and financial resources, and meet the franchisor's standards for franchisees. The transferee cannot own or operate a competitive business. The franchisee must provide written notice to Casiola at least 30 days before the proposed transfer and fulfill other obligations, including settling all outstanding debts and ensuring the transferee is bound by the franchise agreement's terms.

Furthermore, Casiola may require the transferee to execute the then-current standard form Franchise Agreement, which may have different terms than the original agreement, although it will maintain the same Royalty Fee, Advertising Contributions, and other financial obligations. The transferee may also be required to upgrade the administrative office to meet current standards. The franchisee must pay a $10,000 transfer fee and ensure that the transferee completes any required training programs. These conditions collectively suggest that any transfer, including one due to dissolution, is subject to Casiola's approval and specific conditions.