Does Fly To Fit Franchise have a right of first refusal before a Franchisee engages in a Transfer?
Fly_To_Fit Franchise · 2024 FDDAnswer from 2024 FDD Document
- 15.5 Fly To Fit Franchise's Right of First Refusal. 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. Before a franchisee or any owner engages in a transfer, with some exceptions, Fly To Fit has the right to purchase the assets of the franchise.
The franchisee must provide Fly To Fit with a copy of the terms and conditions of any proposed transfer. Fly To Fit then has 30 days from the date of receipt to exercise its right to purchase the assets under the same terms and conditions, except that Fly To Fit can substitute cash for other forms of payment.
If Fly To Fit decides not to exercise its right of first refusal, the franchisee can proceed with the transfer, provided they meet all other terms and conditions outlined in the franchise agreement. This right of first refusal allows Fly To Fit to maintain control over who enters the franchise system and ensures that any transfer aligns with their strategic interests.