What specific article of the Deck Medic Franchise Agreement addresses conditions for approval of transfer?
Deck_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
14.C. CONDITIONS FOR APPROVAL OF TRANSFER
Provided Franchisee and each Owner and Spouse, respectively, are in substantial compliance with this Agreement and the Ancillary Agreements, and Franchisor does not elect to exercise Franchisor's right of first refusal as set forth in Article 14.F. below, Franchisor shall not unreasonably withhold its approval of a Transfer by Franchisee or an Owner. The proposed transferee (including such assignee's owner(s) and spouse(s) if the proposed transferee is a Corporate Entity) must be of good moral character, have sufficient business experience, aptitude and financial resources to own and operate a Deck Medic Business, and otherwise meet Franchisor's then applicable standards for franchisees as determined by Franchisor in its sole, but reasonable discretion. Furthermore, the proposed transferee and the proposed transferee's owners and spouses may not own or operate, or intend to own or operate, a Competitive Business. Franchisee agrees that Franchisor may condition approval of a Transfer upon Franchisee's satisfaction (either before, or contemporaneously with, the effective date of the Transfer) of the following:
Source: Item 23 — RECEIPTS (FDD pages 43–228)
What This Means (2024 FDD)
According to Deck Medic's 2024 Franchise Disclosure Document, Article 14.C. of the Franchise Agreement outlines the conditions for approval of a transfer. This section states that provided the franchisee, each owner, and spouse are in substantial compliance with the agreement and ancillary agreements, and Deck Medic does not exercise its right of first refusal (detailed in Article 14.F), Deck Medic will not unreasonably withhold approval of a transfer.
The document specifies that the proposed transferee must have good moral character, sufficient business experience, aptitude, and financial resources to operate a Deck Medic business. They must also meet Deck Medic's standards for franchisees and not own or operate a competitive business. Deck Medic may also require the franchisee to meet certain conditions before or during the transfer.
Furthermore, amendments to this article exist for franchisees in Hawaii, Minnesota, and New York, supplementing subarticle 14.C.(6) to ensure that the rights and causes of action arising in favor of the franchisee under the respective state's franchise laws remain in force. This indicates that Deck Medic must comply with state-specific franchise laws regarding transfer rights, providing additional protection to franchisees in those states.