What does Franchisor's approval of a Deck Medic franchise transfer indicate?
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;
- (17) The Transfer must be made in compliance with all applicable laws;
- (18) The Transfer of the Franchised Business, the lease for Franchisee's non-residential Administrative Office (if applicable), and the assets of the Franchised Business shall be made only in conjunction with a Transfer of this Agreement, approved by Franchisor in accordance with and subject to this Article 14 and the terms and conditions of this Agreement; and
- (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 guarantee approval of future transfers. Each transfer requires separate approval from Deck Medic.
The transfer must comply with all applicable laws. The transfer of the franchised business, the lease for the administrative office (if applicable), and the assets of the franchised business must occur alongside the transfer of the Franchise Agreement, which Deck Medic must approve.
Deck Medic's consent to a transfer does not waive any claims it may have against the franchisee or waive Deck Medic's right to demand strict compliance with the agreement by the transferee. This means that even with an approved transfer, Deck Medic retains its rights regarding the original franchisee's obligations and the new franchisee's adherence to the franchise agreement.