What section of the Chocolate Fish Coffee FDD must a transfer upon death or incapacity comply with?
Chocolate_Fish_Coffee 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 Owner 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 Chocolate Fish Franchising (or to another person who was an Owner at the time of death or incapacity of the largest Owner) within nine months after death or incapacity.
Such transfer must comply with Section 15.2.
Source: Item 23 — RECEIPTS (FDD pages 41–119)
What This Means (2024 FDD)
According to the 2024 Chocolate Fish Coffee Franchise Disclosure Document, if a franchisee dies or becomes incapacitated, the transfer of the business must comply with Section 15.2 of the franchise agreement.
This means that the executor, administrator, or personal representative of the deceased or incapacitated franchisee must transfer the Chocolate Fish Coffee business to a third party approved by Chocolate Fish Coffee, or to another person who was an owner at the time of death or incapacity of the largest owner, within nine months. The prospective franchisee will need to familiarize themselves with the requirements outlined in Section 15.2 to ensure compliance during such an event.
Understanding the specific requirements of Section 15.2 is crucial for prospective Chocolate Fish Coffee franchisees. It dictates the process and conditions under which the franchise can be transferred in the event of death or incapacity, ensuring business continuity and adherence to Chocolate Fish Coffee's standards.