Under what condition is a transfer of interest in the Devon Creek agreement allowed?
Devon_Creek Franchise · 2024 FDDAnswer from 2024 FDD Document
This Agreement shall bind and inure to the benefit of the successors and assigns of Franchisor and shall be personally binding on and inure to the benefit of Franchisee (including the individuals executing this Agreement on behalf of the Franchisee entity) and its or their respective heirs, executors, administrators and successors or assigns; provided, however, the foregoing provision shall not be construed to allow a transfer of any interest of Franchisee or Principals in this Agreement or the Franchised Business, except in accordance with Article 16 hereof.
Source: Item 22 — CONTRACTS (FDD page 45)
What This Means (2024 FDD)
According to Devon Creek's 2024 Franchise Disclosure Document, the franchise agreement is personally binding to the franchisee. However, the agreement does not allow a transfer of any interest of the franchisee in the agreement or the franchised business except in accordance with Article 16 of the agreement.
Article 16 is not included in the provided excerpts. Therefore, the specific conditions under which a transfer of interest is allowed cannot be determined.
A prospective Devon Creek franchisee should review Article 16 of the Franchise Agreement carefully and discuss transfer conditions with the franchisor to fully understand their rights and obligations regarding transferring their franchise interest.