Is a general release required from the seller as a condition for Bombs Away to approve a franchise transfer?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
| Provision | Section in franchise or | Summary |
|---|---|---|
| m. Conditions for | § 15.2 | Pay transfer fee; buyer meets our standards; |
| franchisor’s approval of | ||
| transfer | buyer is not a competitor of ours; buyer and its owners sign our then-current franchise agreement and related documents (including personal guaranty); you’ve made all payments to us and are in compliance with all contractual requirements; buyer completes training program; you sign a general release; business complies with then-current system specifications. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 28–31)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, a general release is required from the seller as a condition for Bombs Away to approve a franchise transfer. Specifically, the seller must sign a general release as part of the transfer process.
This requirement means that if you, as a Bombs Away franchisee, decide to sell your franchise, you will need to sign a document releasing Bombs Away from any potential future claims or liabilities related to your operation of the franchise. This is a fairly standard practice in franchising, designed to protect the franchisor from lingering issues after a transfer.
In addition to the general release, Bombs Away has other conditions for approving a transfer, including that the buyer must meet Bombs Away's standards, not be a competitor, sign the current franchise agreement and related documents (including a personal guaranty), complete the training program, and ensure the business complies with the current system specifications. You must also have made all payments due to Bombs Away and be in compliance with all contractual requirements.