Does Fitstop have a right of first refusal on the sale of a franchise by an estate?
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, Fitstop has a right of first refusal regarding the sale of a franchise by an estate. Specifically, if Fitstop does not approve a potential transferee who proposes to take over the Fitstop franchise as a beneficiary under the franchisee's will or through intestate succession, the estate has the option to sell the franchise to a third party, subject to Fitstop's approval.
However, this sale and transfer must occur within 180 calendar days after the appointment of the executor, administrator, or other personal representative. This transfer is also subject to the standard terms of transfer outlined in the Franchise Agreement, including Fitstop's right of first refusal.
If an approved transfer of the Fitstop franchise is not completed within the specified 180 calendar days, Fitstop retains the right to terminate the Franchise Agreement. This clause ensures that Fitstop maintains control over who operates a franchise, even in the event of the original franchisee's death, and that the transfer process adheres to a specific timeline.