Is there a transfer fee required for a Bombs Away franchise transfer?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
| Provision | Section in franchise or | Summary |
|---|---|---|
| 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, a transfer fee is required to transfer a franchise. Specifically, Item 17 outlines the conditions for the franchisor's approval of a transfer, which includes paying a transfer fee. The FDD specifies that Section 15.2 of the franchise agreement contains the details regarding the transfer fee.
In addition to paying the transfer fee, the buyer must meet Bombs Away's standards and not be a competitor. The buyer and their owners must also sign the then-current franchise agreement and related documents, including a personal guaranty. The franchisee must have made all payments to Bombs Away and be in compliance with all contractual requirements. The buyer must also complete the training program, and the seller must sign a general release. Finally, the business must comply with the then-current system specifications.
It is important for prospective franchisees to carefully review Section 15.2 of the franchise agreement to understand the exact amount of the transfer fee and all other conditions and obligations related to transferring a Bombs Away franchise. Understanding these requirements is crucial for anyone considering selling their franchise in the future.