Does the Crawlspace Medic franchise agreement inure to the benefit of the franchisee's heirs?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
- 16.2. Restrictions on Transfers by Franchisee. Franchisee's rights and duties under this Agreement are personal to Franchisee as it is organized and with the Principals of the business as they exist on the date of execution of this Agreement, and Franchisor has made this Agreement with Franchisee in reliance on Franchisor's perceptions of the individual and collective character, skill, aptitude, attitude, business ability, and financial capacity of Franchisee. Thus, no transfer, as hereafter defined, may be made without Franchisor's prior written approval. Franchisor may void any transfer made without such approval.
- 16.3.
Transfers by Franchisee.
Franchisee shall not directly or indirectly sell, assign, transfer, give, devise, convey or encumber this Agreement or any right or interest herein or hereunder (a "Transfer"), the Franchise, the Franchised Business or any assets thereof (except in the ordinary course of business) or suffer or permit any such assignment, transfer, or encumbrance to occur by operation of law unless it first obtains the written consent of Franchisor.
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2024 FDD)
Based on the 2024 Crawlspace Medic Franchise Disclosure Document, the franchise agreement is personal to the franchisee and the principals of the business as they exist on the date of execution. Crawlspace Medic enters into the agreement based on their perceptions of the individual and collective character, skill, aptitude, attitude, business ability, and financial capacity of the franchisee.
Because of this, the franchisee cannot directly or indirectly sell, assign, transfer, give, devise, convey, or encumber the agreement or any right or interest without the prior written consent of Crawlspace Medic. This includes transfers by operation of law. Crawlspace Medic may void any transfer made without such approval.
This means that the franchise agreement does not automatically inure to the benefit of the franchisee's heirs. If the franchisee wishes to transfer the franchise to an heir, they must obtain written consent from Crawlspace Medic, which Crawlspace Medic may withhold. This is a common provision in franchise agreements, as franchisors want to ensure that any new franchisee meets their standards and is capable of operating the business successfully.