If a Bombs Away franchisee is in default, can they transfer the franchise?

According to Bombs Away's 2024 Franchise Disclosure Document, a franchisee in default is restricted from transferring their franchise. Specifically, before a franchisee can transfer the franchise, they must meet several conditions, including not being in default or breach of the Franchise Agreement.

Bombs Away requires that the franchisee has paid all monetary obligations to Bombs Away and its affiliates, as well as to any lessor, vendor, supplier, or lender to the business. The franchisee must not be in default or breach of the Franchise Agreement or any other obligation owed to Bombs Away or its affiliates. This requirement ensures that the franchisee is in good standing financially and contractually before a transfer can be considered.

This provision protects Bombs Away by ensuring that new franchisees are not burdened with unresolved issues or liabilities from the previous franchisee. For a prospective Bombs Away franchisee, this means maintaining compliance with the franchise agreement and fulfilling all financial obligations is crucial to retain the option of transferring the franchise in the future.