Can Central Bark Doggy Day Care deny an assignment for any reason whatsoever?
Central_Bark_Doggy_Day_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
- (a) This Agreement has been entered into by us in reliance upon and in consideration of the singular personal skill, qualifications and trust and confidence that we have in you. Therefore, subject to our right of first refusal pursuant to Section 7.3(d) of this Agreement, neither your interest in this Agreement nor any of your rights or privileges hereunder shall be assigned or transferred, voluntarily or involuntarily, in whole or in part, by operation of Applicable Law or otherwise ("Assignment"), in any manner without our prior written consent, which consent may be withheld for any reason whatsoever.
Source: Item 1 — Franchisee shall have paid all Royalty Fees, advertising fund contributions, LAC contributions, amounts owed for purchases by Franchisee from Franchisor, or Franchisor's affiliates, and all other amounts owed to Franchisor, Franchisor's affiliates, and third-party creditors, and shall have submitted to Franchisor all required reports and statements; (FDD pages 106–233)
What This Means (2025 FDD)
According to Central Bark Doggy Day Care's 2025 Franchise Disclosure Document, Central Bark Doggy Day Care has significant control over the assignment of franchise agreements. The agreement has been entered into with consideration of the franchisee's personal skills, qualifications, trust, and confidence.
Specifically, the FDD states that a franchisee cannot assign their interest in the agreement or any rights or privileges without the prior written consent of Central Bark Doggy Day Care. This consent can be withheld for any reason. This means that Central Bark Doggy Day Care has broad discretion in deciding whether to approve a proposed assignment.
This clause is significant for potential franchisees because it limits their ability to sell or transfer their franchise to a third party without the franchisor's approval. While a franchisee may find a suitable buyer, Central Bark Doggy Day Care can deny the assignment for any reason, potentially trapping the franchisee in an unwanted business venture. It is important to understand the conditions under which Central Bark Doggy Day Care would approve or deny an assignment and to negotiate terms that provide more flexibility if possible.