What are the conditions for Bombs Away's approval of 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. |
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, the franchisor's approval of a transfer is subject to certain conditions. These conditions ensure that any new franchisee meets Bombs Away's standards and maintains the integrity of the franchise system.
Specifically, Bombs Away requires the payment of a transfer fee. The buyer must meet Bombs Away's standards and not be a competitor. Both the buyer and their owners are required to sign the then-current franchise agreement and related documents, including a personal guaranty. The franchisee must have made all payments due to Bombs Away and be in compliance with all contractual requirements. The buyer must also 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 are typical in franchising, as Bombs Away aims to maintain consistent brand standards and protect its interests. The right of first refusal allows Bombs Away to control who enters the franchise system, while the conditions for transfer ensure that new franchisees are qualified and committed to the brand. A prospective franchisee should carefully review Section 15.2 of the franchise agreement for the complete details.