Must a buyer of a Bombs Away franchise complete a training program as a condition of transfer approval?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
| Provision | Section in franchise or | Summary |
|---|---|---|
| m. Conditions for | § 15.2 | Pay transfer fee; buyer meets our standards; |
| franchisor’s approval of | ||
| transfer | buyer is not a competitor of ours; buyer and its owners sign our then-current franchise agreement and related documents (including personal guaranty); you’ve made all payments to us and are in compliance with all contractual requirements; buyer completes training program; you sign a general release; business complies with then-current system specifications. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 28–31)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, a buyer must complete a training program to gain approval for a franchise transfer. This requirement is outlined in Item 17, which summarizes the conditions for the franchisor's approval of a transfer.
Specifically, the FDD states that for a transfer to be approved, the buyer must meet Bombs Away's standards, not be a competitor, and sign the then-current franchise agreement and related documents, including a personal guaranty. Additionally, the seller must be current on all payments and compliant with all contractual requirements, sign a general release, and ensure the business complies with the then-current system specifications. The buyer's completion of the training program is listed among these conditions.
This requirement ensures that the new franchisee is adequately prepared to operate the Bombs Away franchise according to the franchisor's standards. It protects the brand's reputation and consistency across all locations. For a prospective seller, it's crucial to find a buyer willing to undergo the training. For a prospective buyer, understanding the training commitment is essential before proceeding with the transfer.