A. No franchise granted hereunder, or any interest therein, may be assigned, sold, transferred, leased, mortgaged, encumbered or conveyed in any manner whatsoever, either in whole or in part, by forced or involuntary sale, or by ordinary sale, contract, consolidation or otherwise, without the prior written consent of the Chief of Police. Any request to transfer or assign the franchise must be in writing and must be submitted to the Chief of Police at least one hundred twenty (120) days prior to the proposed effective date of such sale, transfer, or assignment.
B. Upon receipt of a written request to assign or otherwise convey a franchise, together with an application for a new franchise and application fee, all as required of new franchise applicants, the Chief of Police shall process the application in the same manner as an application for a new franchise. The Chief of Police may approve or deny the request based upon the same criteria as applicable to new franchise applications.
C. The provisions of subsection A, above, shall apply to any change in control of a franchisee, as determined by the Chief of Police. The term
CHANGE IN CONTROL as used herein is not limited to a change in major stockholders or partners of the official police tow service, but also includes any change in actual working control in whatever manner exercised. In the event an official police tow service is, or is owned by, a corporation, prior written consent of the Chief of Police shall be required where ownership or control of more than forty-nine percent (49%) of the voting stock of the corporation is being sold or conveyed to non-owners or shareholders of the official police tow service. Nothing in this provision shall be construed to require the prior authorization of the Chief of Police where the only change in control is a transfer of the franchise to a wholly owned subsidiary of the franchisee.
D. Any attempt to sell, transfer, lease, assign, sublet, mortgage, or otherwise convey any or all of an official police tow service franchise, in violation of this chapter, shall be null and void and shall be grounds for revocation of its franchise.
(Ord. 1070, passed 6-1-04)