Are transfers due to death or permanent disability of a Crawlspace Medic franchisee subject to the conditions for transfers outlined in Article 16?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
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 the 2024 Crawlspace Medic FDD, transfers of a franchise due to the death or permanent disability of the franchisee are subject to the conditions for transfers outlined in Article 16 of the franchise agreement. If the franchisee or their principals die or become permanently disabled, the franchise will terminate unless prohibited by law.
If the law prohibits termination, the executor, administrator, conservator, or other personal representative must transfer the interest in the franchise agreement within six months to a third party approved by Crawlspace Medic. This transfer, including those by devise or inheritance, is subject to the conditions for transfers in Article 16. However, if the transfer occurs via gift, devise, or inheritance, it is not subject to the terms of Section 16.6.
For Crawlspace Medic agreements, "permanent disability" means a mental or physical condition that prevents the person from continuously supervising the franchise business for six months. During the period following death or permanent disability, the franchised business must be supervised by an interim successor manager satisfactory to Crawlspace Medic, or Crawlspace Medic may provide interim management at its discretion.