Where in the Endless Summer Sweets franchise agreement can I find information about 'transfer' by franchisee?
Endless_Summer_Sweets Franchise · 2024 FDDAnswer from 2024 FDD Document
| Provision | Section in franchise | Summary |
|---|---|---|
| or other agreement | ||
| k. “Transfer” by | FA: Article 1 | For you (or any owner of your business) to |
| franchisee - defined | ||
| MUDA: Background | voluntarily or involuntarily transfer, sell, or | |
| Statement | dispose of, in any single or series of | |
| transactions, (i) substantially all of the assets of | ||
| the business, (ii) the franchise agreement, (iii) | ||
| or other agreement | any direct or indirect ownership interest in the business, or (iv) control of the business. | |
| l. Franchisor’s approval of | FA: § 15.2 | No transfers without our approval. No transfers without our approval. |
| transfer by franchisee | MUDA: § 7 | |
| m. Conditions for | FA: § 15.2 | Pay transfer fee; buyer meets our standards; |
| franchisor’s approval of | ||
| transfer | ||
| MUDA: none | buyer is not a competitor of ours; buyer and its owners sign our then-current franchise agreement and related documents (including personal guaranty); you’ve made all payments to us and are in compliance with all contractual requirements; buyer completes training program; you sign a general release; business complies with then-current system specifications (including remodel, if applicable). |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 30–34)
What This Means (2024 FDD)
According to Endless Summer Sweets's 2024 Franchise Disclosure Document, Item 17 details the provisions regarding renewal, termination, transfer, and dispute resolution of the franchise relationship. Specifically, it outlines where to find information about the transfer of the franchise by the franchisee within the Franchise Agreement (FA) and the Multi-Unit Development Agreement (MUDA).
The FDD indicates that 'transfer' by the franchisee is defined in Article 1 of the Franchise Agreement and the Background Statement of the MUDA. This section specifies that transfer includes any voluntary or involuntary transfer, sale, or disposal in a single or series of transactions. This covers substantially all assets of the business, the franchise agreement itself, or any direct or indirect ownership interest or control of the business.
Furthermore, Section 15.2 of the Franchise Agreement addresses the franchisor's approval of a transfer by the franchisee, stating that no transfers are allowed without Endless Summer Sweets's approval. Conditions for the franchisor's approval of a transfer are also detailed in Section 15.2 of the FA and the MUDA. These conditions include paying a transfer fee, ensuring the buyer meets Endless Summer Sweets's standards and is not a competitor, and that the buyer completes the training program. The franchisee must also be current on all payments and contractual requirements, and the business must comply with the current system specifications, including any required remodeling.