Is Bombs Away's agreement a necessary condition for a franchisee to establish additional franchised outlets or expand into additional territory?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
You do not have the right to establish additional franchised outlets or expand into additional territory. If you desire to do so, you must (1) meet our then-current criteria for new franchisees, (2) be in compliance with your franchise agreement at all times since opening your business, (3) have demonstrated your capability to operate a multi-territory franchise successfully, and (4) obtain our agreement.
Source: Item 12 — TERRITORY (FDD pages 23–24)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, franchisees need Bombs Away's approval to establish additional franchised outlets or expand into new territories. The FDD states that franchisees do not automatically have the right to open additional locations or expand their territory.
To be considered for additional locations or territory, a franchisee must first meet Bombs Away's then-current criteria for new franchisees. This suggests that the franchisee will be evaluated as if they were a new applicant, ensuring they meet the current standards for financial stability, experience, and other qualifications that Bombs Away deems necessary.
Furthermore, the franchisee must be in full compliance with their existing franchise agreement since they first opened their Bombs Away business. This indicates that a franchisee's operational performance and adherence to the franchise agreement's terms are critical factors. The franchisee must also demonstrate the capability to successfully manage a multi-territory franchise. Finally, the franchisee must obtain Bombs Away's agreement before expanding.