Does Bombs Away have a right of first refusal if I want to transfer my Bombs Away business to my co-owner?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
| Provision | Section in franchise or | Summary |
|---|---|---|
| n. Franchisor’s right of | If you want to transfer your business (other | |
| first refusal to acquire | ||
| franchisee’s business | than to your co-owner or to your spouse, sibling, or child), we have a right of first refusal. | |
| 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, if you want to transfer your Bombs Away business to your co-owner, Bombs Away does not have a right of first refusal. Bombs Away maintains a right of first refusal if you want to transfer your business to someone other than a co-owner, spouse, sibling, or child.
However, even when transferring to a co-owner, the FDD states that Bombs Away requires that you pay a transfer fee, that the buyer meets Bombs Away's standards and is not a competitor, that the buyer and their owners sign Bombs Away's current franchise agreement and related documents (including a personal guaranty), that you have made all payments to Bombs Away and are in compliance with all contractual requirements, that the buyer completes the training program, that you sign a general release, and that the business complies with the current system specifications.
It is important to note that the franchise agreement in effect at the time of transfer may differ from the original agreement. Prospective franchisees should carefully review Item 17 of the FDD and the franchise agreement itself to fully understand the conditions and implications of transferring their Bombs Away franchise.