Does Bombs Away Franchising require a release of claims from the franchisee as a condition of transfer?

According to Bombs Away's 2024 Franchise Disclosure Document, a general release of claims is required from the franchisee, its owners, and the transferee and its owners as a condition of transfer. This release must be in a form satisfactory to Bombs Away. This requirement is part of the conditions Bombs Away may impose when granting consent to a transfer of the franchise agreement.

In practical terms, this means that if a franchisee wants to sell their Bombs Away franchise, they, along with their owners, and the potential buyer and their owners, must sign a document releasing Bombs Away from any and all claims they may have against the company. This is a standard practice in franchising, intended to prevent future legal disputes arising from past operations or the transfer process itself.

The FDD also includes a form of general release as Attachment 3. This form specifies that the Releasor releases Bombs Away from all claims, causes of action, suits, debts, agreements, promises, demands, liabilities, contractual rights and/or obligations. The Releasor also agrees not to initiate any legal proceedings against Bombs Away. This release is comprehensive, covering known and unknown claims arising from the Franchise Agreement through the date of signing. However, the FDD notes that this document is not signed when purchasing a franchise but may be required for renewals or as a condition of approving a sale.