What constitutes a 'transfer' of my Bombs Away franchise?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
| Provision | Section in franchise or | Summary |
|---|---|---|
| k. “Transfer” by franchisee | For you (or any owner of your business) to | |
| - defined | voluntarily or involuntarily transfer, sell, or dispose of, in any single or series of transactions, (i) substantially all of the assets of the business, (ii) the franchise agreement, (iii) any direct or indirect ownership interest in the business, or (iv) control of the business. | |
| l. Franchisor’s approval of | No transfers without our approval. No transfers without our approval. | |
| transfer by franchisee |
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 'transfer' by the franchisee is comprehensively defined. It includes any instance where you (or any owner of your business) voluntarily or involuntarily transfer, sell, or dispose of the business through a single transaction or a series of transactions.
This broad definition specifically covers several scenarios: (i) transferring substantially all of the assets of the Bombs Away business, (ii) transferring the franchise agreement itself, (iii) transferring any direct or indirect ownership interest in the business, or (iv) transferring control of the business. Essentially, any action that results in a change of ownership or control of the Bombs Away franchise is considered a transfer.
Bombs Away requires approval for all transfers. Item 17 details that no transfers can occur without the franchisor's approval. This provision is in place to ensure that any new owner meets Bombs Away's standards and is capable of maintaining the brand's reputation and operational standards. Prospective franchisees should be aware of these transfer restrictions, as violating them is listed as a non-curable default that could lead to termination of the franchise agreement.