Must a transfer after the death or incapacity of a Bombs Away franchisee comply with Section 15.2?

According to Bombs Away's 2024 Franchise Disclosure Document, a transfer of the franchise business following the death or incapacity of the franchisee (or the owner with the largest ownership interest, if the franchisee is an entity) must comply with Section 15.2 of the franchise agreement. The executor, administrator, or personal representative has nine months to transfer the business to a Bombs Away Franchising-approved third party or to another existing owner.

Section 15.2 outlines the conditions for transfers by the franchisee, requiring Bombs Away to receive at least 60 days' prior notice and consent for the transfer. Bombs Away may impose conditions such as receiving a transfer fee of $7,500 plus broker fees, ensuring the assignee meets the standards for new franchisees, and requiring the assignee to execute the current franchise agreement. The assignee must also not be a competitor, and all owners of the assignee must provide a guaranty.

Furthermore, the franchisee must have paid all outstanding obligations to Bombs Away and its affiliates, as well as to lessors, vendors, suppliers, or lenders, and not be in default of the agreement. The proposed assignee, along with their owners and employees, must undergo any required training, and both the franchisee and the transferee must execute a general release of Bombs Away. Finally, the business must fully comply with Bombs Away's most recent System Standards. This ensures that any transfer of the Bombs Away franchise, even in the event of death or incapacity, adheres to the brand's standards and protects the franchisor's interests.