How can Fly To Fit Franchise exercise its right of first refusal?
Fly_To_Fit Franchise · 2024 FDDAnswer from 2024 FDD Document
Before Franchisee (or any Owner) engages in a Transfer (except under Section 15.3, to a co-Owner, or to a spouse, sibling, or child of an Owner), Fly To Fit Franchise will have a right of first refusal, as set forth in this Section.
Franchisee (or its Owners) shall provide to Fly To Fit Franchise a copy of the terms and conditions of any Transfer.
For a period of 30 days from the date of Fly To Fit Franchise's receipt of such copy, Fly To Fit Franchise will have the right, exercisable by notice to Franchisee, to purchase the assets subject of the proposed Transfer for the same price and on the same terms and conditions (except that Fly To Fit Franchise may substitute cash for any other form of payment).
If Fly To Fit Franchise does not exercise its right of first refusal, Franchisee may proceed with the Transfer, subject to the other terms and conditions of this Article.
Source: Item 22 — CONTRACTS (FDD page 44)
What This Means (2024 FDD)
According to Fly To Fit's 2024 Franchise Disclosure Document, Fly To Fit has a right of first refusal before a franchisee engages in a transfer of their franchise, with some exceptions. These exceptions include transfers under Section 15.3, to a co-owner, or to a spouse, sibling, or child of an owner. To initiate the process, the franchisee must provide Fly To Fit with a copy of the terms and conditions of the proposed transfer.
Fly To Fit then has 30 days from the date they receive this information to exercise their right of first refusal. This is done by providing notice to the franchisee that they intend to purchase the assets subject to the proposed transfer. The purchase will be for the same price and under the same terms and conditions as the proposed transfer. However, Fly To Fit has the option to substitute cash for any other form of payment.
If Fly To Fit does not exercise its right of first refusal within the 30-day period, the franchisee is then permitted to proceed with the transfer, provided that all other terms and conditions outlined in Article 15 of the franchise agreement are met. This ensures Fly To Fit has the opportunity to maintain control over who enters their franchise system, while also allowing franchisees the flexibility to transfer their business if Fly To Fit declines to purchase it.