Does Bombs Away Franchising require the proposed assignee to meet Bombs Away Franchising's then-applicable standards for new franchisees?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
In granting any such consent, Bombs Away Franchising may impose conditions, including, without limitation, the following:
- (ii) the proposed assignee and its owners have completed Bombs Away Franchising's franchise application processes, meet Bombs Away Franchising's then-applicable standards for new franchisees, and have been approved by Bombs Away Franchising as franchisees;
Source: Item 22 — CONTRACTS (FDD pages 35–36)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, if a franchisee wants to transfer their franchise to someone else, the proposed assignee must meet Bombs Away's standards for new franchisees at that time. This requirement is part of the conditions Bombs Away may impose when granting consent for a transfer.
Specifically, the proposed assignee and their owners must complete Bombs Away's franchise application processes and be approved by Bombs Away as franchisees. This ensures that anyone taking over a Bombs Away franchise has the necessary qualifications and meets the brand's standards.
This condition protects Bombs Away by ensuring that new operators are properly vetted and capable of maintaining the brand's quality and reputation. For a franchisee looking to sell, it means finding a buyer who is not only financially capable but also meets Bombs Away's criteria for new franchisees, which could potentially narrow the pool of eligible buyers.