Who must execute a general release of Bombs Away Franchising during a franchise transfer?

According to Bombs Away's 2024 Franchise Disclosure Document, during a franchise transfer, the franchisee, its owners, and the transferee and its owners must execute a general release of Bombs Away Franchising. This release must be in a form that is satisfactory to Bombs Away. This requirement is one of several conditions that Bombs Away may impose when granting consent for a transfer.

In practical terms, this means that if a franchisee wants to sell their Bombs Away franchise, not only does the buyer (transferee) need to be approved and meet Bombs Away's standards, but both the seller (franchisee) and the buyer, along with their respective owners, must sign a document releasing Bombs Away from any potential claims or liabilities. This is a fairly standard practice in franchising, as it protects the franchisor from future legal issues that might arise from the transfer of ownership.

The general release ensures that Bombs Away is protected from any past, present, or future claims related to the franchise agreement or the operation of the business. Prospective franchisees should carefully review the form of the general release to understand the full scope of what they are releasing. It is advisable to consult with an attorney to fully understand the implications of signing such a release.