Must a transferee be approved by Casiola in the event of a transfer of the Franchise Agreement due to death or disability?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
| n. | Franchisor's right of first refusal to acquire franchisee's business | 14.F. | We have the right to match any offer to purchase your Casiola Business or the Corporate Entity operating your Casiola Business. |
|---|---|---|---|
| o. | Franchisor's option to purchase | Not | Not applicable. |
| franchisee's business | applicable | ||
| p. | Death or disability of franchisee | 14.D. | If you are an individual, within 30 days of your death or permanent |
| disability, your executor and/or legal representative must appoint | |||
| an Operating Manager approved by us and within 60 days of such | |||
| appointment the Operating Manager must complete, to our | |||
| satisfaction, our initial training program. Within 12 months of the | |||
| date of death or disability, the Franchise Agreement must be | |||
| transferred to a transferee approved by us and otherwise | |||
| transferred in accordance with the terms of the Franchise | |||
| Agreement. If the franchisee is a Corporate Entity, within 30 days | |||
| of the death or permanent disability of your Managing Owner, if | |||
| there are other Owners, you must appoint a replacement Operating | |||
| Manager approved by us and within 60 days of such appointment | |||
| the replacement Operating Manager must complete, to our | |||
| satisfaction, our initial training program. |
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, if a franchisee dies or becomes permanently disabled, the Franchise Agreement must be transferred to a transferee approved by Casiola. This transfer must occur within 12 months of the date of death or disability.
For individual franchisees, within 30 days of death or permanent disability, their executor or legal representative must appoint an Operating Manager approved by Casiola. Within 60 days of this appointment, the Operating Manager must complete Casiola's initial training program to Casiola's satisfaction.
If the franchisee is a Corporate Entity and the Managing Owner dies or becomes permanently disabled, the entity must appoint a replacement Operating Manager approved by Casiola within 30 days, provided there are other Owners. This replacement Operating Manager must complete the initial training program within 60 days of appointment to Casiola's satisfaction. These stipulations ensure that even in unforeseen circumstances, the Casiola franchise continues to be operated by someone trained and approved by the company.