If a Crawlspace Medic franchisee wishes to transfer their interest, what must they promptly do?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
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)
According to the 2024 Crawlspace Medic Franchise Disclosure Document, a franchisee cannot directly or indirectly sell, assign, transfer, give, devise, convey, or encumber the Franchise Agreement, any rights or interests within it, the franchise itself, the franchised business, or any of its assets without first obtaining written consent from Crawlspace Medic. This restriction applies unless the transfer occurs in the ordinary course of business.
This requirement means that if a Crawlspace Medic franchisee wants to sell their business, they must get approval from the franchisor. Crawlspace Medic has the right to either grant or deny this request at their discretion. This provision allows Crawlspace Medic to maintain control over who joins their franchise system and ensures that new franchisees meet their standards.
This is a fairly standard clause in franchise agreements. Franchisors want to ensure that any new franchisees are well-qualified and a good fit for the brand. A prospective Crawlspace Medic franchisee should carefully consider this clause and understand that selling their franchise may not always be a straightforward process and is subject to the franchisor's approval.