If Casiola approves a transfer, is it obligated to approve future transfers by the same transferee?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
- (15) Franchisee and transferee acknowledge and agree that Franchisor's approval of the Transfer indicates only that the transferee meets, or Franchisor waived, the criteria established by Franchisor for franchisees as of the time of such transfer, and Franchisor's approval thereof does not constitute a warranty or guaranty by Franchisor, express or implied, of the suitability of the terms of sale, successful operation, or profitability of the Franchised Business;
Source: Item 23 — RECEIPTS (FDD pages 47–209)
What This Means (2024 FDD)
According to Casiola's 2024 Franchise Disclosure Document, Casiola's approval of a transfer does not obligate them to approve future transfers by the same transferee. Casiola states that their approval only indicates that the transferee met their criteria for franchisees at the time of the transfer.
Casiola explicitly states that this approval does not constitute a warranty or guarantee, either expressed or implied, regarding the suitability of the sale terms, successful operation, or the profitability of the franchised business. This means that even if a transferee is initially approved, there's no assurance from Casiola that the business will be successful under their management, or that the terms of the sale are advantageous.
This provision protects Casiola from potential liabilities or claims related to the performance of the business after the transfer. It also allows Casiola to reassess a transferee's qualifications should they seek to transfer the franchise again in the future, ensuring that all current standards are met at the time of each proposed transfer. As a prospective franchisee, it is important to recognize that each transfer is evaluated independently, and past approval does not guarantee future approval.