Does Deck Medic have a right of first refusal to purchase my franchise if I want to sell it?
Deck_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
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 interest or, at Franchisor's election, the representations and warranties contained in the offer. If Franchisor does not exercise its right of first refusal, Franchisee or Owner (as applicable) may complete the Transfer to the purchaser pursuant to and in accordance with the terms of the Offer, provided that separate and apart from this Article 14.F. right of first refusal, Franchisee complies with the terms of this Article 14. However, if the sale to the purchaser is not completed within 120 days after delivery of the Offer to Franchisor, or there is a material change in the terms of the sale, Franchisor will again have the right of first refusal specified in this Article 14.F. Franchisor's right of first refusal in this Article 14.F. shall not apply to any Transfer pursuant to Article 14.E. of this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 43–228)
What This Means (2024 FDD)
According to Deck Medic's 2024 Franchise Disclosure Document, Deck Medic does have a right of first refusal if a franchisee wishes to transfer their franchise. If a franchisee or owner wants to transfer the franchise, the agreement, the Deck Medic business, or the administrative office, they must first get a signed, written offer from a potential buyer. This offer must then be submitted to Deck Medic.
Deck Medic then has 30 days to decide if they want to purchase the franchisee's interest at the same price and terms as the offer. Deck Medic can, however, substitute cash for any other form of payment proposed in the offer. If Deck Medic decides to purchase the interest, the franchisee or owner is obligated to sell it to them. Deck Medic will have at least an additional 60 days to prepare for the closing of the sale.
The franchisee or owner must provide all customary representations and warranties as the seller. If Deck Medic does not exercise its right of first refusal, the franchisee or owner can proceed with the transfer to the original purchaser, as long as they comply with all other terms in the agreement. However, if the sale is not completed within 120 days after Deck Medic received the offer, or if there is a material change in the terms, Deck Medic has the right of first refusal again. This right of first refusal does not apply to transfers made under Article 14.E of the agreement.