If both spouses are Fitstop franchisees, under what condition would a transfer of the agreement or property between them be subject to the standard transfer requirements?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
However, if both spouses are franchisees under this Agreement, such a transfer will not be subject to the transfer requirements herein, unless the spouse to whom this Agreement or the concerned property is being transferred is not actively engaged in the operation of the Franchise, in which case we can declare that the transfer is subject to all transfer terms of this Agreement and may exercise our right of first refusal.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, if both spouses are franchisees and a transfer of the agreement or property occurs between them, it generally won't be subject to the standard transfer requirements. However, there's a specific condition where these requirements would apply.
The transfer will be subject to the standard transfer terms if the spouse receiving the Fitstop agreement or property is not actively involved in operating the franchise. In this case, Fitstop has the right to declare that the transfer is subject to all transfer terms outlined in the agreement.
This provision protects Fitstop's interests by ensuring that anyone operating a Fitstop franchise is qualified and actively engaged in the business. If a spouse who isn't actively involved in the business were to receive the franchise rights, Fitstop reserves the right to ensure they meet the standard requirements for franchisees, including the right of first refusal.