What happens if a Dryer Vent Squad franchisee dies or becomes disabled?
Dryer_Vent_Squad Franchise · 2024 FDDAnswer from 2024 FDD Document
| n. | Franchisor's right of first refusal to acquire franchisee's business | 14.F. | We have the right to match any offer to purchase your Dryer Vent Squad Business or the corporate entity operating your Dryer Vent Squad Business. |
|---|---|---|---|
| o. | Franchisor's option to purchase | Not | Not applicable. |
| franchisee's business | applicable | ||
| p. | Death or disability of franchisee | 14.D. | If you are an individual, within 30 days of your death or permanent |
| disability, your executor and/or legal representative must appoint an | |||
| Operating Manager approved by us and within 60 days of such | |||
| appointment the Operating Manager must complete, to our | |||
| satisfaction, our initial training program. Within 12 months of the | |||
| date of death or disability, the Franchise Agreement must be | |||
| transferred to a transferee approved by us and otherwise transferred | |||
| in accordance with the terms of the Franchise Agreement. If the | |||
| franchisee is a Corporate Entity, within 30 days of the death or | |||
| permanent disability of your Managing Owner, if there are other | |||
| Owners, you must appoint a replacement Operating Manager | |||
| approved by us and within 60 days of such appointment the | |||
| replacement Operating Manager must complete, to our satisfaction, | |||
| our initial training program. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 41–45)
What This Means (2024 FDD)
According to Dryer Vent Squad's 2024 Franchise Disclosure Document, specific procedures are in place in the event of a franchisee's death or disability. If the franchisee is an individual, their executor or legal representative has 30 days to appoint an Operating Manager approved by Dryer Vent Squad. Within 60 days of this appointment, the Operating Manager must successfully complete Dryer Vent Squad's initial training program. Furthermore, the Franchise Agreement must be transferred to a Dryer Vent Squad-approved transferee within 12 months of the date of death or disability.
If the Dryer Vent Squad franchisee is a corporate entity and the Managing Owner dies or becomes permanently disabled, the other owners have 30 days to appoint a replacement Operating Manager, subject to Dryer Vent Squad's approval. This replacement Operating Manager then has 60 days to complete the initial training program to Dryer Vent Squad's satisfaction.
These stipulations ensure continuity of the Dryer Vent Squad franchise and adherence to brand standards even in unforeseen circumstances. Prospective franchisees should consider these requirements and have plans in place to address such possibilities, including identifying potential Operating Managers and transferees.