Under what conditions can a Crawlspace Medic franchisee assign their obligations under the agreement?
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)
According to Crawlspace Medic's 2024 Franchise Disclosure Document, a franchisee's rights and duties under the Franchise Agreement are personal to the franchisee and its principals as they exist on the date the agreement is executed. Crawlspace Medic has entered into the agreement based on their assessment of the franchisee's character, skills, aptitude, business ability, and financial capacity.
Therefore, a franchisee cannot directly or indirectly sell, assign, transfer, give, devise, convey, or encumber the agreement or any rights or interests related to it, the franchise, the franchised business, or any assets without first obtaining written consent from Crawlspace Medic. This restriction applies to any transfer, assignment, or encumbrance, whether voluntary or by operation of law.
Crawlspace Medic retains the right to void any transfer made without their prior written approval. This clause ensures that Crawlspace Medic maintains control over who operates a franchise under their brand and that any new operator meets their standards.