Who is permitted to manage and operate the Dryer Vent Squad Franchised Business?
Dryer_Vent_Squad Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchised Business shall be made only in conjunction with a Transfer of this Agreement, approved by Franchisor in accordance with and subject to this Article 14 and the terms and conditions of this Agreement; and
- (19) Franchisor's consent to a Transfer of any interest that is subject to the restrictions of this Agreement shall not constitute a waiver of any claims it may have against Franchisee or deemed a waiver of Franchisor's right to demand strict and exact compliance with this Agreement by the transferee.
14.D. DEATH OR DISABILITY OF FRANCHISEE OR AN OWNER
(1) If Franchisee is an individual and not a Corporate Entity, upon the death or permanent disability of Franchisee, the executor, administrator, conservator or other personal representative of Franchisee, must appoint a manager that meets the equivalent of an Operating Manager within a reasonable time, which shall not exceed 30 days from the date of death or permanent disability. The appointed manager (as applicable) must serve and qualify as an Operating Manager and 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 Operating Manager (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 Operating Manager 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 (the "Management Service Fees") for such management services and may cease to provide management services at any time.
- (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)
According to the 2024 Dryer Vent Squad Franchise Disclosure Document, the franchisee is primarily responsible for the development, ownership, and operation of the Dryer Vent Squad business, as indicated by the definition of "Franchised Business." The franchisee typically manages the business from the "Franchisee's Administrative Office." However, there are specific conditions under which someone else may manage the Dryer Vent Squad business.
In the event of the franchisee's death or permanent disability, if the franchisee is an individual, their representative must appoint a manager within 30 days. This manager must meet the standards of an Operating Manager and complete the required training program within 60 days of appointment. If a qualified manager is not appointed within the initial 30-day period, Dryer Vent Squad has the option to appoint a manager to oversee the business on behalf of the franchisee, at the franchisee's expense, until a suitable Operating Manager is found. Dryer Vent Squad can charge a reasonable fee for these management services and may discontinue them at any time.
If the franchisee is a corporation and the Managing Owner dies or becomes permanently disabled, the remaining owners have 30 days to appoint a new Managing Owner approved by Dryer Vent Squad. This new Managing Owner must also complete the training program within 60 days. Similar to individual franchisees, if a Managing Owner is not appointed within 30 days, Dryer Vent Squad can appoint a manager at the franchisee's expense until a qualified Managing Owner is in place. If the Managing Owner is the only owner of the Corporate Entity, the rules for individual franchisees apply. In any case of death, the deceased's interest must be transferred to a Dryer Vent Squad-approved person within 12 months.