Must a Dryer Vent Squad Operating Manager be approved by the franchisor?
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, in the event of the death or permanent disability of a franchisee, an appointed Operating Manager must be approved by Dryer Vent Squad. If the franchisee is an individual, their executor or legal representative has 30 days to appoint an Operating Manager, who then has 60 days to complete Dryer Vent Squad's initial training program to the franchisor's satisfaction. Within 12 months of the death or disability, the Franchise Agreement must be transferred to a Dryer Vent Squad-approved transferee.
If the 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. This replacement Operating Manager must also be approved by Dryer Vent Squad and complete the initial training program within 60 days of appointment.
This requirement ensures that even in unforeseen circumstances, the Dryer Vent Squad business continues to be managed by someone who meets the franchisor's standards and is properly trained. This protects the brand and the interests of other franchisees in the system. Franchisees should ensure they have a plan in place for appointing a qualified Operating Manager in case of death or disability to ensure a smooth transition and compliance with the Franchise Agreement.