Does Bombs Away Franchising need the franchisee's consent to undergo a change in ownership?

According to Bombs Away's 2024 Franchise Disclosure Document, Bombs Away Franchising does not need the franchisee's consent to transfer ownership. The franchise agreement specifies that Bombs Away Franchising can transfer the agreement, its rights, or obligations to any person or entity without the franchisee's approval. This also applies to changes in Bombs Away Franchising's ownership or control. This clause is found within Article 15.1 of the franchise agreement, which covers transfers.

This provision means that a Bombs Away franchisee has no say in who becomes the new owner or controlling party of the Bombs Away Franchising company. The franchisee cannot prevent or influence a sale or merger of the franchisor. This is a standard clause in most franchise agreements, as it allows the franchisor flexibility in its business operations and strategic decisions.

While Bombs Away Franchising does not require the franchisee's consent for its own ownership changes, the franchisee is not afforded the same flexibility. If a franchisee wishes to transfer their franchise, they must provide Bombs Away Franchising with at least 60 days' notice and obtain Bombs Away Franchising's consent, which Bombs Away Franchising can grant or deny with conditions. These conditions may include paying a transfer fee of $7,500 plus broker fees, ensuring the proposed assignee meets Bombs Away Franchising's standards, and having the assignee execute the then-current franchise agreement.