During arbitration or litigation, are Bombs Away Franchising and the franchisee required to continue performing their obligations under the franchise agreement?

According to Bombs Away's 2024 Franchise Disclosure Document, unless the franchise agreement has been terminated, both Bombs Away and the franchisee must continue to comply with the agreement and fulfill their respective obligations during any arbitration or litigation process. This requirement ensures that the business relationship continues as normally as possible while the dispute is being resolved.

This clause is significant for prospective Bombs Away franchisees because it means that even if a dispute arises, they must continue to operate the franchise according to the terms of the agreement. This includes maintaining brand standards, paying royalties, and adhering to operational guidelines. Failure to do so could result in further penalties or even termination of the franchise agreement, regardless of the status of the dispute resolution process.

For Bombs Away, this requirement means they must also continue to support the franchisee as outlined in the agreement, providing necessary resources and upholding their end of the bargain. This mutual obligation aims to maintain stability and prevent either party from using the dispute as an excuse to neglect their responsibilities. Franchisees should carefully consider this provision and ensure they are prepared to meet their obligations even if a dispute arises with Bombs Away.