What transfer fee does Bombs Away Franchising charge if a franchisee transfers their franchise?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
hisee'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
Source: Item 22 — CONTRACTS (FDD pages 35–36)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, if a franchisee seeks to transfer their franchise, Bombs Away Franchising may require a transfer fee. This fee is set at $7,500, in addition to any broker fees and other out-of-pocket costs that Bombs Away Franchising incurs during the transfer process.
Before a transfer can occur, the franchisee must provide Bombs Away Franchising with at least 60 days' notice. Bombs Away Franchising's consent is required for the transfer to proceed. Bombs Away Franchising will assess the proposed assignee to ensure they meet the standards for new franchisees.
The prospective franchisee must not be a competitor and needs to execute Bombs Away's current franchise agreement, which may have different terms than the original agreement. The new franchisee will not be required to pay an initial franchise fee. Additionally, all owners of the proposed assignee must provide a guaranty, and the franchisee must have fulfilled all financial obligations to Bombs Away and other related parties.