Does Fitstop have the right to designate a third party to receive the interest being transferred?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
15.4 If we elect to exercise, or to assign under payment guarantee, the Right of First Refusal, the Parties shall act expeditiously to complete the transfer, provided that the date for the completion of the transfer can be extended at our option for up to an additional 30 calendar days.
15.5 If there are any material changes in the terms and conditions of the proposed transfer after we notify you of our election not to exercise our Right of First Refusal, or after the expiration of the time period within which we can elect to exercise our right, you shall notify us of the changes in writing and we shall then have an additional 10 calendar days within which to elect to exercise our Right of First Refusal.
15.6 If the proposed transfer is not completed for any reason within 90 calendar days after we elect not to exercise or assign our Right of First Refusal, or after the expiration of the time allowed for such election, a new Right of First Refusal commences as to the concerned transaction and any subsequent proposed sales or transfers by you.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to the 2024 Fitstop Franchise Disclosure Document, Fitstop has the right to assign its Right of First Refusal under payment guarantee, meaning they can designate a third party to receive the interest being transferred.
Specifically, if Fitstop elects to exercise or assign its Right of First Refusal, the parties involved must act quickly to complete the transfer. Fitstop also has the option to extend the completion date of the transfer by up to 30 calendar days.
If there are any significant changes to the terms of the proposed transfer after Fitstop has initially declined to exercise its Right of First Refusal, Fitstop must be notified in writing and will then have an additional 10 calendar days to decide whether to exercise this right. If the transfer is not completed within 90 calendar days after Fitstop declines to exercise or assign its Right of First Refusal, a new Right of First Refusal commences for any subsequent proposed sales or transfers.