What conditions must be met for Expense Reduction Analysts to approve a transfer of the franchise by the franchisee?

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Accepted Answer

|    | PROVISION                                                                  | SECTION IN FRANCHISE AGREEMENT | SUMMARY                                                                                                                                                                                                                                                                                                                                                                                        |
|----|----------------------------------------------------------------------------|--------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| h. | "Cause" defined – non curable defaults | 27.2 | Non-curable defaults include failure to successfully complete Foundational Training, misuse of marks, interest in operation of like business, unauthorized assignment, misrepresentation in securing franchise, abandonment, repeated defaults, unapproved transfer, insolvency, conviction of a felony of criminal misconduct, and competition with franchise network |
| i. | Franchisee's obligations on termination/non-renewal | 27.4 and 28 | Complete de-identification, discontinue using Marks, payment of amounts due, honoring option to purchase or lease, assigning phone numbers, maintain records, assign interest in outstanding contracts; if termination due to your non-renewal, you must work with Franchisor to assign interest in existing client contracts and income generated by them. |
| j. | Assignment of contract by franchisor | 25 | No restrictions on our right to assign. |
| k. | "Transfer" by franchisee - defined | 26 | Includes transfer of agreement or sale of assets or ownership change |
| l. | Franchisor approval of transfer by franchisee | 26.1 and 26.4 | We have the right to approve all transfers but will not unreasonably withhold approval |
| m. | Conditions for franchisor approval of transfer | 26.3 and Exhibit 1 – Section 13 | Notice, new franchisee qualifies, Assignment and training fee paid, defaults cured, purchase agreement approved, training completed, mutual release and guarantee signed, and new franchisee signs our then-current form of franchise agreement that may contain terms and conditions materially different from those in your franchise agreement. |

Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 43–46)

What conditions must be met for Expense Reduction Analysts to approve a transfer of the franchise by the franchisee?

Answer from 2025 FDD Document

What This Means (2025 FDD)

	PROVISION	SECTION IN FRANCHISE AGREEMENT	SUMMARY
h.	"Cause" defined – non curable defaults	27.2	Non-curable defaults include failure to successfully complete Foundational Training, misuse of marks, interest in operation of like business, unauthorized assignment, misrepresentation in securing franchise, abandonment, repeated defaults, unapproved transfer, insolvency, conviction of a felony of criminal misconduct, and competition with franchise network
i.	Franchisee's obligations on termination/non-renewal	27.4 and 28	Complete de-identification, discontinue using Marks, payment of amounts due, honoring option to purchase or lease, assigning phone numbers, maintain records, assign interest in outstanding contracts; if termination due to your non-renewal, you must work with Franchisor to assign interest in existing client contracts and income generated by them.
j.	Assignment of contract by franchisor	25	No restrictions on our right to assign.
k.	"Transfer" by franchisee - defined	26	Includes transfer of agreement or sale of assets or ownership change
l.	Franchisor approval of transfer by franchisee	26.1 and 26.4	We have the right to approve all transfers but will not unreasonably withhold approval
m.	Conditions for franchisor approval of transfer	26.3 and Exhibit 1 – Section 13	Notice, new franchisee qualifies, Assignment and training fee paid, defaults cured, purchase agreement approved, training completed, mutual release and guarantee signed, and new franchisee signs our then-current form of franchise agreement that may contain terms and conditions materially different from those in your franchise agreement.