What is the Flowerama franchisor's stance on transfers of ownership if the Franchise Agreement is assigned to a partnership?
Flowerama Franchise · 2024 FDDAnswer from 2024 FDD Document
If Franchisee is a partnership, or if the Franchise Agreement is assigned to a partnership, a transfer of the franchise will be deemed to have occurred when any of all partnership interests have been transferred to other than the original partners who entered into the Franchise Agreement or obtained an assignment of the franchise.
All transfers of ownership in a corporate franchisee and a partnership franchisee shall immediately be reported by Franchisee to Franchisor.
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 72–77)
What This Means (2024 FDD)
According to Flowerama's 2024 Franchise Disclosure Document, if the Franchise Agreement is assigned to a partnership, a transfer of the franchise is deemed to have occurred when any or all partnership interests are transferred to individuals other than the original partners who initially entered into the Franchise Agreement or obtained an assignment of the franchise.
Flowerama requires that all transfers of ownership in a partnership franchisee be immediately reported to the franchisor. This ensures Flowerama maintains oversight and control over who operates its franchises and upholds brand standards.
This provision is typical in franchising, as franchisors need to approve new operators to protect their brand and ensure consistent quality. Prospective Flowerama franchisees should understand these transfer restrictions and reporting requirements, as failing to comply could result in a breach of the Franchise Agreement.