What is the required method of notification to Deck Medic regarding a proposed transfer of equity or ownership interests?
Deck_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
14.F. FRANCHISOR'S RIGHT OF FIRST REFUSAL
If Franchisee or an Owner desire to engage, in whole or in part, in a Transfer of Franchisee, this Agreement, Franchisee's Deck Medic Business, Franchisee's non-residential Administrative Office, and/or Franchisee's Administrative Office, then Franchisee or such Owner (as applicable) must obtain a bona fide, signed written offer from the fully disclosed purchaser (the "Offer") and submit an exact copy of the Offer to Franchisor. Franchisor shall have 30 days after receipt of the Offer to decide whether Franchisor will purchase the interest in Franchisee, Franchisee's Deck Medic Business, Franchisee's Administrative Office, and/or Franchisee's Administrative Office for the same price and upon the same terms contained in the Offer (however, Franchisor may substitute cash for any form of payment proposed in the Offer). If
Franchisor notifies Franchisee that Franchisor intends to purchase the interest within said 30 day period, Franchisee or Owner (as applicable) must sell the interest to Franchisor. Franchisor will have at least an additional 60 days to prepare for closing. Franchisor shall be entitled to receive from Franchisee or Owner (as applicable) all customary representations and warranties given by Franchisee or Owner (as applicable) as the seller of the assets and/or the ownership
Source: Item 23 — RECEIPTS (FDD pages 43–228)
What This Means (2024 FDD)
According to Deck Medic's 2024 Franchise Disclosure Document, if a franchisee or owner wants to transfer their franchise, franchise agreement, Deck Medic business, non-residential administrative office, and/or administrative office, they must first obtain a bona fide, signed written offer from the purchaser. Then, the franchisee or owner must submit an exact copy of this offer to Deck Medic.
Deck Medic then has 30 days after receiving the offer to decide whether it will purchase the interest in the franchisee, Deck Medic business, administrative office, or administrative office, for the same price and terms as in the offer. However, Deck Medic can substitute cash for any payment form proposed in the offer. If Deck Medic decides to purchase the interest within that 30-day period, the franchisee or owner must sell the interest to Deck Medic.
Deck Medic will have at least an additional 60 days to prepare for closing. Deck Medic is entitled to receive all customary representations and warranties from the franchisee or owner as the seller of the assets and/or ownership. This process ensures that Deck Medic has the first opportunity to buy back the franchise before it is sold to a third party, allowing them to maintain control over their brand and network.