Can Bombs Away Franchising transfer the franchise agreement without the franchisee's consent?

According to Bombs Away's 2024 Franchise Disclosure Document, Bombs Away Franchising can transfer the franchise agreement to another party without the franchisee's consent. Specifically, Bombs Away Franchising may transfer or assign the agreement, or its rights and obligations, to any person or entity. Additionally, Bombs Away Franchising can undergo a change in ownership or control without needing the franchisee's approval.

This clause gives Bombs Away Franchising significant flexibility in managing its business and potentially allows for the franchise system to be sold or reorganized without direct input from individual franchisees. For a prospective franchisee, this means that the entity they initially contracted with could change, potentially impacting the support, resources, and overall direction of the franchise.

While Bombs Away Franchising has the right to transfer the agreement, the franchisee's ability to transfer is much more restricted. The franchisee must provide at least 60 days' notice and obtain Bombs Away Franchising's consent, which may be subject to various conditions, including the payment of a $7,500 transfer fee plus any broker fees and out-of-pocket costs. The potential new franchisee must also meet Bombs Away Franchising's standards and execute the then-current franchise agreement, which may contain materially different provisions. This asymmetry in transfer rights is common in franchising, where the franchisor seeks to maintain control over the brand and system.