What is the exception to the abandonment clause for Dryer Vent Squad franchisees?
Dryer_Vent_Squad Franchise · 2024 FDDAnswer from 2024 FDD Document
- (2) If Franchisee is a Corporate Entity, upon the death or permanent disability of Franchisee's Managing Owner, the remaining Owners within a reasonable time, which shall not exceed 30 days from the date of death or permanent disability, must appoint a new Managing Owner that is approved by Franchisor.
The appointed Managing Owner must attend and successfully complete the Training Program within 60 days of the appointment.
If Franchisee's Dryer Vent Squad Business is not being managed by a Franchisor approved Managing Owner (as applicable) within 30 days after such death or permanent disability, Franchisor is authorized, but is not required, to immediately appoint a manager to maintain the operations of Franchisee's Dryer Vent Squad Business for, and on behalf of, Franchisee at Franchisee's sole costs until an approved Managing Owner is able to assume the management and operation of Franchisee's Dryer Vent Squad Business.
Franchisor's appointment of a manager for Franchisee's Dryer Vent Squad Business does not relieve Franchisee of its obligations under this Agreement, including this Article 14.D., or constitute a waiver of Franchisor's right to terminate this Agreement pursuant to Article 16, below.
At all times, including while Franchisee's Dryer Vent Squad Business may be managed by Franchisor's appointed manager, Franchisor shall not be liable for any debts, losses, costs, or expenses incurred in the operations of Franchisee's Dryer Vent Squad Business or to any creditor of Franchisee for any products, materials, supplies or services purchased by Franchisee's Dryer Vent Squad Business.
Franchisor has the right to charge a reasonable fee for such management services and may cease to provide management services at any time.
Notwithstanding the foregoing, if Franchisee is a Corporate Entity and the Managing Owner is the only Owner of Franchisee, then Article 14.D.(1) shall apply as if the Managing Owner were the sole individual Franchisee.
Source: Item 23 — RECEIPTS (FDD pages 51–207)
What This Means (2024 FDD)
Based on the 2024 Dryer Vent Squad Franchise Disclosure Document, there is an exception to the abandonment clause for Dryer Vent Squad franchisees. If the franchisee is a corporate entity, upon the death or permanent disability of the Managing Owner, the remaining owners have a reasonable time, not exceeding 30 days from the date of death or permanent disability, to appoint a new Managing Owner approved by Dryer Vent Squad.
The appointed Managing Owner must attend and successfully complete the Dryer Vent Squad Training Program within 60 days of the appointment. If the Dryer Vent Squad Business is not managed by an approved Managing Owner within 30 days after the death or permanent disability, Dryer Vent Squad is authorized to appoint a manager to maintain operations on behalf of the franchisee at the franchisee's expense until an approved Managing Owner can assume management.
Dryer Vent Squad's appointment of a manager does not relieve the franchisee of their obligations under the agreement or waive Dryer Vent Squad's right to terminate the agreement. Dryer Vent Squad is not liable for any debts, losses, costs, or expenses incurred during the operations of the Dryer Vent Squad Business, even while managed by Dryer Vent Squad's appointed manager, and can charge a reasonable fee for management services, which they may cease at any time. If the Managing Owner is the only owner of the corporate entity, the provisions applicable to individual franchisees apply.