Can the new franchise agreement for the assignee of a Bombs Away franchise have materially different provisions?

According to Bombs Away's 2024 Franchise Disclosure Document, a new franchise agreement for the assignee of a Bombs Away franchise can indeed have materially different provisions compared to the original agreement. Specifically, Bombs Away may require the proposed assignee to execute the brand's then-current form of franchise agreement, which may not be identical to the existing agreement. However, the assignee will not be required to pay an initial franchise fee.

This condition is part of the transfer requirements imposed by Bombs Away when a franchisee seeks to transfer their franchise to another party. Bombs Away's ability to alter the agreement terms upon transfer provides them with flexibility to update the franchise agreement to reflect current business practices, legal requirements, or strategic priorities.

For a prospective franchisee looking to sell their Bombs Away franchise in the future, this clause introduces an element of uncertainty. The value of their franchise could be affected by how favorable or unfavorable the new agreement is to potential buyers. The original franchisee needs to be aware that the assignee will be subject to the then-current franchise agreement, which may include terms that are more or less favorable than their own agreement. This could impact the ease and price at which they can transfer their franchise. Therefore, understanding the potential for changes in the franchise agreement is crucial for both current and future Bombs Away franchisees.