What are the permissible forms of ownership for a Fly To Fit franchise?
Fly_To_Fit Franchise · 2024 FDDAnswer from 2024 FDD Document
15.3 Transfer for Convenience of Ownership. If Franchisee is an individual, Franchisee may Transfer this Agreement to a corporation or limited liability company formed for the convenience of ownership after at least 15 days' notice to Fly To Fit Franchise, if, prior to the Transfer: (1) the transferee provides the information required by Section 2.3; (2) Franchisee provides copies of the entity's charter documents, by-laws (or operating agreement) and similar documents, if requested by Fly To Fit Franchise, (3) Franchisee owns all voting securities of the corporation or limited liability company, and (4) Franchisee provides a guaranty in accordance with Section 2.5.
15.4 Transfer upon Death or Incapacity. Upon the death or incapacity of Franchisee (or, if Franchisee is an entity, the Owner with the largest ownership interest in Franchisee), the executor, administrator, or personal representative of that person must Transfer the Business to a third party approved by Fly To Fit Franchise (or to another person who was an Owner at the time of death or incapacity of the largest Owner) within nine months after death or incapacity.
Such transfer must comply with Section 15.2.
Source: Item 22 — CONTRACTS (FDD page 44)
What This Means (2024 FDD)
According to Fly To Fit's 2024 Franchise Disclosure Document, the franchise agreement is made in reliance on the franchisee's business skills, financial capacity, personal character, experience, and business ability.
An individual franchisee can transfer the agreement to a corporation or limited liability company formed for ownership convenience, provided they give Fly To Fit at least 15 days' notice and meet specific conditions. These conditions include providing required information, copies of the entity's charter documents and bylaws if requested, owning all voting securities of the entity, and providing a guaranty.
In the event of the death or incapacity of the franchisee (or the owner with the largest interest if the franchisee is an entity), the business must be transferred within nine months to a Fly To Fit-approved third party or another existing owner. This transfer must comply with the standard transfer conditions outlined in the franchise agreement.