What monetary obligations must a Bombs Away franchisee pay before transferring the franchise?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
- (vi) Franchisee has paid all monetary obligations to Bombs Away Franchising and its affiliates, and to any lessor, vendor, supplier, or lender to the Business, and Franchisee is not otherwise in default or breach of this Agreement or of any other obligation owed to Bombs Away Franchising or its affiliates;
Source: Item 22 — CONTRACTS (FDD pages 35–36)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, a franchisee must meet all outstanding monetary obligations to Bombs Away and its affiliates, as well as to any lessor, vendor, supplier, or lender to the business, before a transfer of the franchise can be approved. Additionally, 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 Bombs Away does not approve a transfer if the franchisee has outstanding debts or is in violation of the franchise agreement. This protects Bombs Away's financial interests and maintains the integrity of the franchise system.
In addition to settling all outstanding monetary obligations, Bombs Away also requires a transfer fee of $7,500 plus any broker fees and other out-of-pocket costs incurred by Bombs Away. The prospective franchisee must also meet Bombs Away's standards for new franchisees and execute the then-current form of the franchise agreement.