Must a buyer meet Bombs Away's standards to be approved for a transfer?
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. | |
| n. Franchisor’s right of | If you want to transfer your business (other | |
| first refusal to acquire | ||
| franchisee’s business | than to your co-owner or to your spouse, sibling, or child), we have a right of first refusal. |
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, if a franchisee wishes to transfer their franchise, the buyer must meet Bombs Away's standards to be approved. Additionally, the transferring franchisee must pay a transfer fee, and the buyer cannot be a competitor of Bombs Away. The buyer and their owners must also sign the then-current franchise agreement and related documents, including a personal guaranty.
Furthermore, the franchisee must have made all payments due to Bombs Away and be in compliance with all contractual requirements. The buyer is also required to complete the training program. The franchisee must sign a general release, and the business must comply with the then-current system specifications.
Bombs Away also maintains the right of first refusal, meaning that Bombs Away has the first option to purchase the franchise business before it is transferred to another party, except in cases of transfer to a co-owner, spouse, sibling, or child. These stipulations are typical in franchising, as they allow Bombs Away to maintain control over who enters their system and ensure brand consistency.