Instructor approval

Definition

The franchisor naming one adult who must personally teach, and approving any successor.

Why It Matters

In the franchised systems the franchise runs on a named person and not on the company: an entity holder designates one individual the franchisor approves, and that person is personally responsible for running the center. It does not convey. A buyer is approved from scratch, and one system's own disclosure expects roughly eight months between tentative and final approval while the buyer completes start-up training, with the seller unable to close in between and liquidated damages for walking away. That timetable is the deal, so read it before agreeing a closing date.