What is the specific article number related to transfer for Crown Gold Exchange franchisees?
Crown_Gold_Exchange Franchise · 2024 FDDAnswer from 2024 FDD Document
ce directly to the lienholder to pay off such lien. Crown Gold Franchising may withhold 25% of the purchase price for 90 days to ensure that all of Franchisee's taxes and other liabilities are paid. Crown Gold Franchising may assign this purchase option to another party.
ARTICLE 15. TRANSFERS
- 15.1 By Crown Gold Franchising. Crown Gold Franchising may transfer or assign this Agreement, or any of its rights or obligations under this Agreement, to any person or entity, and Crown Gold Franchising may undergo a change in ownership and/or control, without the consent of Franchisee.
- 15.2 By Franchisee. Franchisee acknowledges that the rights and duties set forth in this Agreement are personal to Franchisee and that Crown Gold Franchising entered into this Agreement in reliance on Franchisee's business skill, financial capacity, personal character, experience, and business ability. Accordingly, Franchisee shall not conduct or undergo a Transfer without providing Crown Gold Franchising at least 60 days prior notice of the proposed Transfer, and without obtaining Crown Gold Franchising's consent. In granting any such consent, Crown Gold Franchising may impose conditions, including, without limitation, the following:
- (i) Crown Gold Franchising receives a transfer fee equal to $10,000 plus any broker fees and other out-of-pocket costs incurred by Crown Gold Franchising;
- (ii) the proposed assignee and its owners have completed Crown Gold Franchising's franchise application processes, meet Crown Gold Franchising's then-applicable standards for new franchisees, and have been approved by Crown Gold Franchising as franchisees;
- (iii) the proposed assignee is not a Competitor;
Source: Item 22 — CONTRACTS (FDD pages 38–39)
What This Means (2024 FDD)
According to the 2024 Crown Gold Exchange Franchise Disclosure Document, Article 15 outlines the transfer conditions for both the franchisor and the franchisee.
Specifically, Article 15.1 states that Crown Gold Exchange can transfer the agreement without the franchisee's consent. However, Article 15.2 stipulates that a franchisee must provide Crown Gold Exchange with a 60-day notice and obtain their consent before any transfer.
Crown Gold Exchange may impose conditions such as a $10,000 transfer fee plus broker and out-of-pocket costs. They may also require the assignee to meet their standards for new franchisees and execute the current franchise agreement. These stipulations are typical in franchising, allowing the franchisor to maintain control over who joins their system and ensuring brand consistency.