Does Franchisor's approval of a Deck Medic franchise transfer constitute a warranty or guaranty?
Deck_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
- (16) Franchisee and transferee acknowledge and agree that Franchisor's approval of the Transfer at issue does not constitute Franchisor's approval of future or other Transfers or the waiver of the requirement that Franchisor must approve such future or other Transfers in accordance with this Agreement;
- (19) Franchisor's consent to a Transfer of any interest that is subject to the restrictions of this Agreement shall not constitute a waiver of any claims it may have against Franchisee or deemed a waiver of Franchisor's right to demand strict and exact compliance with this Agreement by the transferee.
Source: Item 23 — RECEIPTS (FDD pages 43–228)
What This Means (2024 FDD)
According to Deck Medic's 2024 Franchise Disclosure Document, the franchisor's approval of a franchise transfer does not constitute approval of future transfers or waive the requirement for future approvals. Specifically, Deck Medic states that the franchisee and transferee acknowledge that the franchisor's approval of the transfer does not mean the franchisor approves of future transfers.
Furthermore, the franchisor's consent to a transfer does not waive any claims it may have against the franchisee or waive the franchisor's right to demand strict compliance with the agreement by the transferee. This means that even if Deck Medic approves a transfer, it retains all rights and claims against the original franchisee and can still enforce the franchise agreement strictly with the new franchisee.
In essence, Deck Medic's approval of a transfer is simply permission for that specific transaction to occur and does not provide any guarantees or assurances beyond that single event. A prospective franchisee should understand that each transfer is evaluated independently, and approval of one transfer does not set a precedent for future transfers. Additionally, the franchisor's rights and ability to enforce the agreement remain intact even after a transfer is approved.