4.08.140 Transfer of franchise.
A. An assignment or transfer of a franchise shall include, but not be limited to:
1. A sale, exchange or other transfer of 50 percent or more of a franchisee’s assets dedicated to service in the City;
2. A sale, exchange, or other transfer of 50 percent or more of the outstanding common stock of a franchisee;
3. Any reorganization, consolidation, merger, recapitalization, voting trust, pooling agreement, escrow arrangement, liquidation or other transaction to which the franchisee or any of its shareholders is a party that results in a change of ownership or control of 50 percent or more of the value or voting rights in the stock of the franchisee; and
4. Any combination of the foregoing that has the effect of a transfer or change of ownership and control.
B. The franchisee shall provide no less than 60 days’ advance written notice to the City of any proposed transfer or assignment.
1. Except as specifically authorized by the City, the franchisee shall not assign any of its rights or delegate or otherwise transfer any of its obligations to any other person without the prior consent of the city council.
2. Any such assignment without the consent of city council shall be void and any such attempted assignment shall constitute default and grounds for termination of the franchise.
C. If a franchisee requests the City’s consent to transfer the franchise, the City shall act on such request within 60 days of the receipt of the franchisee’s written request together with all information, as set forth below, required for the City’s action on the request.
D. The City shall not unreasonably refuse to consent to an assignment of the franchise to a proposed assignee that has sufficient knowledge, experience, and financial resources so as to be able to meet, to the satisfaction of the city council, in its sole discretion, all obligations of the franchisee hereunder.
E. An application to the City to consider a sale or other transfer of a franchise shall include the following:
1. A nonrefundable application fee of $2,000 payable at the time of application to the City in advance to defray the City’s anticipated expenses and costs resulting from the franchisee’s request;
2. Financial statements audited or reviewed by a certified public accountant of the proposed assignee’s operations for the three immediately preceding operating years together with any additional evidence of financial ability to perform its franchise obligations; and
3. A showing that the proposed assignee meets all City criteria for the grant of a franchise as are set out in BC 4.08.100. [BC 4.08.140, added by Ordinance No. 4203, 5/6/02; amended by Ordinance No. 4613, 4/2/13]