What is the definition of a 'Transfer' according to Bombs Away Franchising?

According to Bombs Away's 2024 Franchise Disclosure Document, a 'Transfer' encompasses any action by the franchisee (or any owner) to voluntarily or involuntarily transfer, sell, or dispose of the business assets, the Franchise Agreement itself, any ownership interest in the business, or control of the business. This can occur through a single transaction or a series of transactions. This definition is important because it establishes the scope of what Bombs Away considers a change in ownership or control, which triggers certain requirements and restrictions outlined in the franchise agreement.

Bombs Away retains significant control over transfers to ensure that any new franchisee meets their standards and that the brand's integrity is maintained. The franchisee must seek approval from Bombs Away before undertaking a transfer, and Bombs Away may impose conditions such as receiving a transfer fee and ensuring the proposed assignee meets their current standards for new franchisees.

Understanding the definition of 'Transfer' is crucial for a prospective Bombs Away franchisee because it clarifies the circumstances under which they would need to seek franchisor approval and potentially pay a transfer fee. It also highlights the franchisor's right of first refusal, which could impact the franchisee's ability to sell the business to a party of their choosing. Franchisees should carefully consider these transfer provisions before entering into a franchise agreement.