(A) A franchise may not be assigned or transferred without prior written consent of the city, except that a grantee may freely assign a franchise to an entity who is an affiliate of the franchisee without prior written notice if the assignment is part of any corporate financing, reorganization or refinancing. Notwithstanding the above, any transferee, buyer, mortgagee or assignee shall be subject to the terms and conditions of this agreement. Grantee shall notify the city 30 days in advance of any transfer, assignment or change in controlling ownership interest. In the case of transfer or assignment as security by mortgage or other security instrument in whole or in part to secure indebtedness, such prior written consent shall not be required from grantor unless and until the secured party elects to realize upon the collateral. However, grantor shall provide written notice of the transfer or assignment as security to city prior to such transfer or assignment.
(B) City consent conditions may include, but shall not be limited to, the following.
(1) The franchisee and the proposed assignee or transferee of the franchise shall agree in writing to assume and abide by all of the provisions of the franchise agreement.
(2) No transfer shall be approved unless the city determines the assignee or transferee has the legal, technical and financial ability to comply with the provisions of this chapter and applicable federal, state and local laws, rules and regulations.
(3) Unless otherwise specified in an unexpired franchise agreement, the franchisee shall reimburse the city for all direct and indirect fees, costs and expenses reasonably incurred by the city in considering a request to transfer or assign a franchise.
(4) Any transfer or assignment of a franchise, system or integral part of a system without required prior city approval or without a required and valid franchise agreement shall be void and is cause for revocation of the franchise.
(Ord. 1326, passed 4-3-2017)