What happens to the Crawlspace Medic franchise upon the death or permanent disability of the franchisee or their principals?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
- 16.7.
Death or Permanent Disability.
The grant of rights under this Agreement is personal to Franchisee, and on the death or permanent disability of Franchisee or any of Franchisee's Principals, as the case may be, the Franchise granted by this Agreement will terminate, unless prohibited by applicable law.
If prohibited by applicable law, the executor, administrator, conservator or other personal representative of Franchisee or Franchisee's Principal, as the case may be, will transfer Franchisee's or Franchisee's Principal's interest in this Agreement within six (6) months from the date of death or permanent disability, to a third party approved by Franchisor.
A transfer under this Section 16.7, including without limitation, transfer by devise or inheritance, is subject to the conditions for Transfers in this Article 16 and unless transferred by gift, devise or inheritance, subject to the terms of Section 16.6 above.
For purposes of this Agreement, the term "permanent disability" means a mental or physical disability, impairment or condition that is reasonably expected to prevent or actually does prevent such person from providing continuous and material supervision of the operation of Franchisee's Franchised Business during the six (6)-month period from its onset.
Immediately after the death or permanent disability of such person, or while the Franchise is owned by an executor, administrator, guardian, personal representative or trustee of that person, the Franchised Business shall be supervised by an interim successor manager satisfactory to Franchisor, or Franchisor, in its sole discretion, may provide interim management at no less than
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2024 FDD)
According to Crawlspace Medic's 2024 Franchise Disclosure Document, the franchise agreement is personal to the franchisee. Upon the death or permanent disability of the franchisee or their principals, the franchise will terminate unless prohibited by applicable law. The FDD defines permanent disability as a mental or physical condition that prevents the person from providing continuous and material supervision of the franchise for at least six months.
If applicable law prohibits immediate termination, the executor, administrator, conservator, or other personal representative must transfer the interest in the franchise agreement within six months from the date of death or permanent disability to a third party approved by Crawlspace Medic. This transfer is subject to the standard transfer conditions outlined in the franchise agreement.
During the period following the death or permanent disability, the Crawlspace Medic franchised business must be supervised by an interim successor manager satisfactory to Crawlspace Medic. Alternatively, Crawlspace Medic may, at its sole discretion, provide interim management.