What section of the Chocolate Bash franchise agreement must a transfer upon death or incapacity comply with?
Chocolate_Bash Franchise · 2024 FDDAnswer from 2024 FDD Document
- 15.4 Transfer upon Death or Incapacity. Upon the death or incapacity of Franchisee (or, if Franchisee is an entity, the person with the largest ownership interest in Franchisee), the executor, administrator, or personal representative of that person must Transfer the Business to a third party approved by CB Franchising within nine months after death or incapacity. Such transfer must comply with Section 15.2.
Source: Item 22 — CONTRACTS (FDD pages 38–39)
What This Means (2024 FDD)
According to the 2024 Chocolate Bash Franchise Disclosure Document, if the franchisee (or the person with the largest ownership interest in the franchisee) dies or becomes incapacitated, their executor, administrator, or personal representative must transfer the Chocolate Bash business to a third party approved by CB Franchising within nine months.
This transfer must comply with Section 15.2 of the franchise agreement. This implies that the standard transfer requirements outlined in Section 15.2 will apply even in cases of death or incapacity, ensuring a consistent process for transferring ownership.
Prospective franchisees should carefully review Section 15.2 to understand the specific requirements for transferring a Chocolate Bash franchise, as these will apply to transfers due to death or incapacity. Understanding these requirements is crucial for estate planning and ensuring a smooth transition of the business in unforeseen circumstances.