Under what circumstances does Fly To Fit Franchise NOT have a right of first refusal?
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.
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 Franchise has a right of first refusal before a franchisee engages in a transfer of their franchise. However, there are specific exceptions where this right does not apply.
Specifically, Fly To Fit Franchise does not have a right of first refusal in three instances: first, if the transfer is under Section 15.3, which pertains to transfers to a corporation or limited liability company formed for the convenience of ownership. Second, if the transfer is to a co-owner. Third, if the transfer is to a spouse, sibling, or child of an owner.
This means that a Fly To Fit franchisee has more flexibility to transfer their franchise to these specific parties without needing to offer Fly To Fit Franchise the first opportunity to purchase the franchise. However, all other transfer conditions and requirements outlined in the franchise agreement would still apply.