Must a Bombs Away franchisee be in good standing to transfer their franchise?

According to Bombs Away's 2024 Franchise Disclosure Document, a franchisee must be in good standing to transfer their franchise. Specifically, the franchisee must have paid all monetary obligations to Bombs Away and its affiliates, as well as to any lessor, vendor, supplier, or lender to the business. Additionally, the franchisee must not be in default or breach of the Franchise Agreement or any other obligation owed to Bombs Away or its affiliates.

This requirement ensures that Bombs Away only approves franchise transfers to parties who will maintain the brand's standards and reputation. It protects Bombs Away from potential liabilities or negative impacts that could arise from a transfer to a franchisee who is not in good financial or operational standing.

In addition to being in good standing, the franchisee must provide Bombs Away with at least 60 days' prior notice of the proposed transfer and obtain Bombs Away's consent. Bombs Away may impose several conditions for granting consent, including receiving a transfer fee of $7,500 plus any broker fees and out-of-pocket costs, ensuring the proposed assignee meets Bombs Away's standards for new franchisees, and requiring the proposed assignee to execute Bombs Away's current form of franchise agreement.

These transfer conditions are typical in franchising to allow the franchisor to maintain control over who operates under their brand and to ensure a smooth transition. A prospective Bombs Away franchisee should be aware of these requirements and plan accordingly if they anticipate transferring their franchise in the future.