What section of The Standardx Franchise Agreement addresses the death or disability of the franchisee?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in franchise or other agreement |
|---|---|
| p. Death or disability of franchisee | 12.7 of Franchise Agreement |
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 75–81)
What This Means (2025 FDD)
According to The Standardx's 2025 Franchise Disclosure Document, Item 17 outlines provisions related to the franchise agreement, including details about the death or disability of a franchisee. Specifically, Section 12.7 of The Standardx Franchise Agreement addresses the death or disability of the franchisee.
The FDD states that upon the death or incapacitation of an owner holding a Controlling Ownership Interest in the franchise, or the controlling owner themselves, a representative is required to transfer the ownership to an approved transferee within six months. This clause ensures business continuity and adherence to The Standardx's standards even in unforeseen circumstances.
This provision is important for prospective franchisees as it clarifies the procedure that must be followed in the event of death or disability. It highlights the necessity of having a succession plan or identifying an approved transferee to manage the franchise, ensuring minimal disruption to the business and compliance with The Standardx's requirements. The six-month timeframe provides a window for the representative to find a suitable and approved party to take over the franchise operations.