Under what conditions is Dryer Vent Squad authorized to appoint a manager for a franchise?
Dryer_Vent_Squad Franchise · 2024 FDDAnswer from 2024 FDD Document
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.
Source: Item 23 — RECEIPTS (FDD pages 51–207)
What This Means (2024 FDD)
According to Dryer Vent Squad's 2024 Franchise Disclosure Document, Dryer Vent Squad is authorized to appoint a manager to maintain the operations of a franchisee's Dryer Vent Squad Business under specific circumstances related to the death or disability of the franchisee or managing owner.
If the franchisee is an individual, upon their death or permanent disability, their representative must appoint a manager meeting the standards of an Operating Manager within 30 days. This appointed manager must then complete the Training Program within 60 days of appointment. If a Franchisor-approved Operating Manager is not managing the Dryer Vent Squad Business within 30 days of the franchisee's death or disability, Dryer Vent Squad is authorized, but not required, to appoint a manager at the franchisee's expense.
Similarly, if the franchisee is a Corporate Entity, 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, who must complete the Training Program within 60 days. If this doesn't occur, Dryer Vent Squad is authorized, but not required, to appoint a manager at the franchisee's cost. This also applies if the Managing Owner is the only owner of the Corporate Entity, in which case the rules for individual franchisees apply.
Dryer Vent Squad's appointment of a manager does not relieve the franchisee of their obligations under the agreement, nor does it 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 period their appointed manager is in place, and they have the right to charge a reasonable fee for these management services, which they can cease providing at any time.