Is a proposed assignee of a Bombs Away franchise allowed to be a competitor?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
y Bombs Away Franchising.** Bombs Away Franchising may transfer or assign this Agreement, or any of its rights or obligations under this Agreement, to any person or entity, and Bombs Away Franchising may undergo a change in ownership and/or control, without the consent of Franchisee.
- 15.2 By Franchisee. Franchisee acknowledges that the rights and duties set forth in this Agreement are personal to Franchisee and that Bombs Away Franchising entered into this Agreement in reliance on Franchisee's business skill, financial capacity, personal character, experience, and business ability.
Source: Item 22 — CONTRACTS (FDD pages 35–36)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, a proposed assignee of a Bombs Away franchise is not allowed to be a competitor. Specifically, Bombs Away must grant consent for a transfer to occur. As part of this consent, Bombs Away can impose conditions.
One of the conditions that Bombs Away may impose is that "the proposed assignee is not a Competitor." This means that if you are looking to transfer your Bombs Away franchise to someone else, that person or entity cannot be a competitor of Bombs Away.
This condition is fairly standard in franchising, as franchisors want to protect their brand and system from being acquired or operated by competitors who could use the franchise to gain an advantage or undermine the brand. Franchisees should carefully review the definition of "Competitor" in the franchise agreement to fully understand the scope of this restriction.