What happens if Fitstop does not approve a potential transferee who is a beneficiary under a will?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
- 15.13 If we do not approve a potential transferee who proposes to take this Franchise as a beneficiary under your will or by intestate succession, your estate may sell the Franchise to a third party transferee who is acceptable to us, provided that the sale and transfer take place within 180 calendar days after the appointment of the executor, administrator, or other personal representative of you, and subject to the terms of transfer herein, including our first right of refusal, which shall apply.
If an approved transfer of this Agreement is not completed within said 180 calendar days, we have the right to terminate this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, if Fitstop does not approve a potential transferee who is a beneficiary under a will or by intestate succession, the deceased franchisee's estate has the option to sell the Fitstop franchise to a third party. This third party must be acceptable to Fitstop.
The sale and transfer to the third party must occur within 180 calendar days after the appointment of the executor, administrator, or other personal representative of the franchisee. This transfer is subject to the standard terms of transfer outlined in the Franchise Agreement, including Fitstop's right of first refusal.
If the transfer of the Fitstop franchise is not completed within the specified 180-day period, Fitstop retains the right to terminate the Franchise Agreement. This clause ensures that the franchise continues to operate under an approved owner within a reasonable timeframe, maintaining the brand's standards and operational consistency.