What condition must be met for Extreme Art Studio Franchising, LLC to consent to the Requested Assignment?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisor hereby consents to the Requested Assignment of the Franchised Business from Former Franchisee to New Franchisee upon receipt of the Franchisor's Assignment Fee from Former Franchisee and the mutual execution of this Agreement by all parties. Franchisor waives its right of first refusal set forth in the Former Franchise Agreement.
Source: Item 22 — CONTRACTS (FDD page 49)
What This Means (2024 FDD)
According to the 2024 Extreme Art Studio Franchise Disclosure Document, Extreme Art Studio Franchising, LLC will consent to the assignment of a franchise if the Franchisor's Assignment Fee is received from the Former Franchisee and the agreement is mutually executed by all parties. This means that a franchisee looking to transfer their business to a new owner must first pay the required transfer fee to Extreme Art Studio.
Additionally, all parties involved, including the franchisor, the former franchisee, and the new franchisee, must sign the agreement. This ensures that everyone is in agreement with the terms of the transfer.
Extreme Art Studio also waives its right of first refusal, which it has in the Former Franchise Agreement. This waiver allows the transfer to proceed without Extreme Art Studio exercising its option to purchase the franchise business itself.