What is considered a 'Competitor' to a Bombs Away franchise?

According to the 2024 Bombs Away Franchise Disclosure Document, a 'Competitor' is defined as any business that offers products or services that are the same or similar to those offered by the Bombs Away franchise. This definition is important for franchisees to understand, as it has implications for their ability to engage in other business ventures, both during the term of their franchise agreement and for a period of time after the agreement expires or is terminated.

The franchise agreement includes covenants not to compete, which restrict a franchisee (or guarantor) from having an ownership interest in, lending money to, providing services to, or being employed by any Competitor. These restrictions apply both during the term of the franchise agreement and for two years after the agreement ends. The geographic scope of the post-term restriction includes the franchisee's territory and the territory of any other Bombs Away business operating on the date of termination or transfer.

These non-compete clauses are designed to protect Bombs Away's business interests and prevent franchisees from using the franchisor's confidential information and business model to benefit a competing business. Prospective franchisees should carefully review these restrictions and consider how they might impact their future business opportunities. It is also important to note that the franchisor retains the right to modify these restrictions to the extent necessary to protect its legitimate business interests.