What are the consequences if a Bombs Away franchisee fails to maintain their vehicles in excellent condition?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
If Franchisee uses one or more vehicles for the Business, Franchisee shall ensure that all vehicles comply with all applicable System Standards, including without limitation required equipment and exterior décor.
Franchisee shall keep all vehicles in excellent or better condition, clean, and free of dents and other damage, and
shall ensure that the vehicles present a first-class image appropriate to Bombs Away Franchising's System. Franchisee shall use the vehicle solely for the Business.
Source: Item 22 — CONTRACTS (FDD pages 35–36)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, franchisees are required to maintain their vehicles in excellent condition, keeping them clean and free of dents or other damage to project a first-class image. While the FDD excerpt specifies the standard for vehicle maintenance, it does not explicitly detail the consequences of failing to meet this standard.
However, the FDD does state that Bombs Away may conduct business evaluations, which include evaluating physical conditions. If a franchisee's vehicles do not meet the required standards, this could result in a failure to meet the minimum score requirement for evaluations, which is considered a default under the Franchise Agreement. If a franchisee fails an evaluation due to vehicle condition, Bombs Away may charge the franchisee for all out-of-pocket expenses, plus their then-current evaluation fee, to conduct another evaluation.
Furthermore, if a franchisee breaches any provision of the Franchise Agreement, Bombs Away has the right, but not the obligation, to cure the default on behalf of the franchisee. If Bombs Away chooses to take action to correct the vehicle's condition, the franchisee is responsible for reimbursing Bombs Away for all costs and expenses incurred, including a 10% administrative fee.
Ultimately, failure to maintain vehicles in excellent condition could lead to monetary penalties, increased scrutiny, and potential termination of the Franchise Agreement if the franchisee fails to rectify the issue after receiving notice from Bombs Away.