Can I transfer my Bombs Away franchise without the franchisor's approval?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
| Provision | Section in franchise or | Summary |
|---|---|---|
| l. Franchisor’s approval of | No transfers without our approval. No transfers without our approval. | |
| transfer by franchisee | ||
| 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. | |
| 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. | |
| k. “Transfer” by franchisee | For you (or any owner of your business) to | |
| - defined | voluntarily or involuntarily transfer, sell, or dispose of, in any single or series of transactions, (i) substantially all of the assets of the business, (ii) the franchise agreement, (iii) any direct or indirect ownership interest in the business, or (iv) control of the business. |
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, you cannot transfer your franchise without the franchisor's approval. The FDD specifies that any transfer by a franchisee requires approval from Bombs Away. A transfer is defined broadly as any voluntary or involuntary action to transfer, sell, or dispose of the business assets, the franchise agreement itself, any ownership interest, or control of the business.
The requirement for franchisor approval is a standard practice in franchising. This allows Bombs Away to ensure that any new owner meets their standards and is capable of maintaining the brand's reputation and operational consistency. This protects the overall franchise system.
If you wish to transfer your Bombs Away franchise, the FDD outlines conditions for franchisor approval. These conditions include paying a transfer fee, ensuring the buyer meets Bombs Away's standards and isn't a competitor, having the buyer sign the current franchise agreement and related documents (including a personal guaranty), ensuring you are current on all payments and contractual obligations, having the buyer complete the training program, you signing a general release, and ensuring the business complies with the current system specifications. Bombs Away also retains the right of first refusal, meaning they have the first opportunity to acquire your business before you can transfer it to another party (excluding transfers to a co-owner, spouse, sibling, or child).
It is important to carefully review Section 15.2 of the franchise agreement, as referenced in Item 17, to fully understand all the requirements and restrictions related to transferring your Bombs Away franchise. Failing to obtain approval or meet the specified conditions could result in a breach of the franchise agreement.