What section of the Craters & Freighters agreement outlines the conditions for an authorized transfer?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon death or permanent disability of Franchisee or a principal owner of Franchisee, the executor, administrator, conservator, guardian, or other personal representative of such person must transfer its interest in this Agreement or such interest in Franchisee to a third party approved by Franchisor. Such disposition of this Agreement or such interest (including, without limitation, transfer by bequest or inheritance) (collectively, "Disposition") must be completed within a reasonable time, not to exceed six (6) months from the date of death or permanent disability ("Disposition Deadline"), and will be subject to all of the terms and conditions applicable to transfers contained in Section 16 of this Agreement including, but not limited to Franchisor's right of first refusal; provided, however, in the event the Disposition has not been completed before the Disposition Deadline because the estate of Franchisee (or a principal owner of Franchisee, as the case may be) has not yet been concluded in probate court, then the Disposition Deadline will be extended until such time that such probate court has completed the probate process, not to exceed a total of twelve (12) months from the date of death or permanent disability.
Source: Item 22 — CONTRACTS (FDD pages 49–50)
What This Means (2025 FDD)
According to the 2025 Craters & Freighters Franchise Disclosure Document, Section 16 of the franchise agreement contains the terms and conditions applicable to transfers. This is explicitly stated in the context of the death or permanent disability of a franchisee or principal owner.
Specifically, if a franchisee or principal owner dies or becomes permanently disabled, their representative must transfer the interest in the agreement or the interest in the franchise to a third party approved by Craters & Freighters. This transfer, referred to as a "Disposition," must be completed within a reasonable time, not exceeding six months from the date of death or permanent disability.
However, this six-month deadline may be extended up to a total of twelve months if the estate is still in probate court. All transfer terms and conditions outlined in Section 16, including Craters & Freighters' right of first refusal, apply to such a transfer. Therefore, Section 16 of the Craters & Freighters agreement is the key section outlining authorized transfer conditions.