Under Schedule B, can a Coffee News franchisee assign their rights and obligations without consent?
Coffee_News Franchise · 2025 FDDAnswer from 2025 FDD Document
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- The parties agree that neither party may assign or transfer any rights and obligations under this Schedule B, directly or indirectly except upon the prior written consent of the other party. Subject to the foregoing, this Schedule B shall be binding upon and inure to the benefit of the parties hereto, their successors and assigns.
Source: Item 23 — Receipts (FDD pages 36–118)
What This Means (2025 FDD)
According to the 2025 Coffee News Franchise Disclosure Document, a franchisee cannot assign or transfer any rights and obligations under Schedule B without prior written consent from the other party. This restriction applies whether the assignment or transfer is direct or indirect. This means that if a Coffee News franchisee wants to transfer their rights or obligations related to the Promissory Note, they must obtain written permission from Coffee News.
This requirement ensures that Coffee News maintains control over who assumes the financial obligations and rights associated with the franchise agreement. It allows Coffee News to assess the suitability and financial stability of any potential assignee or transferee before approving the transfer. Without this clause, a franchisee could potentially transfer their obligations to an unqualified party, which could negatively impact Coffee News.
This type of clause is standard in franchise agreements to protect the franchisor's interests and maintain the integrity of the franchise system. The Schedule B agreement remains binding upon the parties involved, their successors, and assignees, provided the written consent is obtained beforehand. This ensures continuity and clarity in the contractual relationship, as long as all parties agree in writing to any changes in responsibility or ownership.