Can a competitor of Bombs Away be approved as a buyer in a franchise 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. |
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 competitor cannot be approved as a buyer in a franchise transfer. The FDD outlines specific conditions that a buyer must meet to be approved by Bombs Away.
One of these conditions is that the buyer must not be a competitor of Bombs Away. Additionally, the buyer and its owners are required to sign the then-current franchise agreement and related documents, including a personal guaranty. The transferring franchisee must also be up-to-date on all payments and in compliance with all contractual requirements. The buyer is also required to complete the training program, and the seller must sign a general release. Finally, the business must comply with the then-current system specifications.
These stipulations ensure that any new franchisee aligns with Bombs Away's brand standards and operational practices, and does not pose a competitive threat to the existing franchise network. This protects the integrity and consistency of the Bombs Away system.