Can Ifly transfer or assign the Franchise Agreement without the franchisee's consent?
Ifly Franchise · 2024 FDDAnswer from 2024 FDD Document
e deemed to be acting unreasonably.
ARTICLE 13
13. TRANSFER RESTRICTIONS.
13.1. Transfer by Franchisor. Franchisor shall have the right to transfer or assign this Agreement and all or any part of its rights or obligations herein without Franchisee's consent to any person or legal entity that assumes Franchisor's obligations hereunder, and upon such transfer or assignment, the transferee or assignee shall be solely responsible for all Franchisor's obligations arising hereunder subsequent to the transfer or assignment. Without limitation of the foregoing, Franchisor may sell its assets to a third party; may offer its securities privately or publicly; may merge with or acquire other entities or persons, or may be acquired by another entity or person;
Source: Item 23 — Receipts (FDD pages 57–174)
What This Means (2024 FDD)
According to Ifly's 2024 Franchise Disclosure Document, Ifly has the right to transfer or assign the Franchise Agreement without the franchisee's consent. This means Ifly can transfer the agreement to another person or legal entity without needing the franchisee's permission.
If Ifly transfers or assigns the agreement, the new party taking over the agreement will be responsible for Ifly's obligations from that point forward. This transfer can occur through various means, including the sale of Ifly's assets, offering securities, merging with or acquiring other entities, or undergoing financial restructuring.
This clause gives Ifly significant flexibility in managing its business and potentially undergoing significant changes without requiring the consent of individual franchisees. For a prospective franchisee, this means that the entity they initially contracted with could change, and they would need to work with the new entity assuming the obligations of the agreement.