What standards must a proposed assignee meet to be approved as a Bombs Away franchisee?
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. Accordingly, Franchisee shall not conduct or undergo a Transfer without providing Bombs Away Franchising at least 60 days prior notice of the proposed Transfer, and without obtaining Bombs Away Franchising's consent. In granting any such consent, Bombs Away Franchising may impose conditions, including, without limitation, the following:
- (i) Bombs Away Franchising receives a transfer fee equal to $7,500 plus any broker fees and other out-of-pocket costs incurred by Bombs Away Franchising;
- (ii) the proposed assignee and its owners have completed Bombs Away Franchising's franchise application processes, meet Bombs Away Franchising's then-applicable standards for new franchisees, and have been approved by Bombs Away Franchising as franchisees;
- (iii) the proposed assignee is not a Competitor;
- (iv) the proposed assignee executes Bombs Away Franchising's then-current form of franchise agreement and any related documents, which form may contain materially different provisions than this Agreement (provided, however, that the proposed assignee will not be required to pay an initial franchise fee);
- (v) all owners of the proposed assignee provide a guaranty in accordance with Section 2.5;
- (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;
- (vii) the proposed assignee and its owners and employees undergo such trainin
Source: Item 22 — CONTRACTS (FDD pages 35–36)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, a franchisee cannot transfer their franchise rights without Bombs Away's consent. Bombs Away may impose several conditions when granting consent for a transfer.
Specifically, the proposed assignee and their owners must complete Bombs Away's franchise application process and meet the standards for new franchisees. They must also be approved by Bombs Away as franchisees. The proposed assignee cannot be a competitor of Bombs Away. Additionally, the proposed assignee must execute Bombs Away's current franchise agreement, which may contain different provisions than the original agreement, although they won't have to pay an initial franchise fee. All owners of the proposed assignee must provide a guaranty.
Furthermore, the proposed assignee and its owners and employees must undergo any training that Bombs Away requires. The franchisee, its owners, and the transferee and its owners must execute a general release of Bombs Away in a form satisfactory to Bombs Away. Finally, the business must fully comply with all of Bombs Away's most recent System Standards. The franchisee must also have paid all monetary obligations to Bombs Away and its affiliates, as well as to any lessor, vendor, supplier, or lender to the business, and not be in default or breach of the agreement.