How many days does Casiola have to decide whether to purchase the franchisee's interest after receiving the offer?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
If Franchisee or an Owner desire to engage, in whole or in part, in a Transfer of Franchisee, this Agreement, Franchisee's Casiola Business, Franchisee's non-residential Administrative Office, and/or Franchisee's Administrative Office, then Franchisee or such Owner (as applicable) must obtain a bona fide, signed written offer from the fully disclosed purchaser (the "Offer") and submit an exact copy of the Offer to Franchisor. Franchisor shall have 30 days after receipt of the Offer to decide whether Franchisor will purchase the interest in Franchisee, Franchisee's Casiola Business, Franchisee's non-residential Administrative Office, and/or Franchisee's Administrative Office for the same price and upon the same terms contained in the Offer (however, Franchisor may substitute cash for any form of payment proposed in the Offer). If Franchisor notifies Franchisee that Franchisor intends to purchase the interest within said 30 day period, Franchisee or Owner (as applicable) must sell the interest to Franchisor. Franchisor will have at least an additional 60 days to prepare for closing. Franchisor shall be entitled to receive from Franchisee or Owner (as applicable) all customary representations and warranties given by Franchisee or Owner (as applicable) as the seller of the assets and/or the ownership interest or, at Franchisor's election, the representations and warranties contained in the offer. If Franchisor does not exercise its right of first refusal, Franchisee or Owner (as applicable) may complete the Transfer to the purchaser pursuant to and in accordance with the terms of the Offer, provided that separate and apart from this Article 14.F. right of first refusal, Franchisee complies with the terms of this Article 14. However, if the sale to the purchaser is not completed within 120 days after delivery of the Offer to Franchisor, or there is a material change in the terms of the sale, Franchisor will again have the right of first refusal specified in this Article 14.F. Franchisor's right of first refusal in this Article 14.F. shall not apply to any Transfer pursuant to Article 14.E. of this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 47–209)
What This Means (2024 FDD)
According to Casiola's 2024 Franchise Disclosure Document, Casiola has a right of first refusal if a franchisee wishes to transfer their interest in the franchise. Specifically, Casiola has 30 days after receiving a written offer from a prospective purchaser to decide whether it will purchase the franchisee's interest. This includes the interest in the franchisee, the Casiola business, the non-residential administrative office, and/or the administrative office.
If Casiola decides to purchase the interest, it must notify the franchisee within the 30-day period. Casiola then has at least an additional 60 days to prepare for closing the purchase. During the sale, the franchisee must provide customary representations and warranties.
However, if Casiola does not exercise its right of first refusal within the initial 30-day period, the franchisee can proceed with the transfer to the original purchaser, provided the sale is completed within 120 days of the original offer date and there are no material changes to the terms. If the sale is not completed within 120 days or if there are material changes, Casiola has the right of first refusal again.