What constitutes 'cooperation' with an audit or evaluation by Bombs Away Franchising for a Bombs Away franchisee?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
r to conduct an evaluation. If the Location will be open to the public or used for meeting customers or potential customers, Bombs Away Franchising may enter the premises of the Business from time to time during normal business hours and conduct an evaluation. Franchisee shall cooperate with Bombs Away Franchising's evaluators. The evaluation may include, but is not limited to, observing operations, conducting a physical inventory, evaluating physical conditions, monitoring sales activity, speaking with employees and customers, and removing samples of products, supplies and materials. Bombs Away Franchising may videotape and/or take photographs of the evaluation. Bombs Away Franchising may set a minimum score requirement for evaluations, and Franchisee's failure to meet or exceed the minimum score will be a default under this Agreement. Without limiting Bombs Away Franchising's other rights under this Agreement, Franchisee will, as soon as reasonably practical, correct any deficiencies noted during an evaluation. If Bombs Away Franchising conducts an evaluation because of a governmental report, customer complaint or other customer feedback, or a default or non-compliance with any System Standard by Franchisee (including following up a previous failed evaluation), then Bombs Away Franchising may charge all out-ofpocket expenses plus its then-current evaluation fee to Franchisee.
- 11.3 Bombs Away Franchising's Right to Cure. If Franchisee breaches or defaults under any provision of this Agreement, Bombs Away Franchising may (but has no obligation to) take any action to cure the default on behalf of Franchisee, without any liability to Franchisee. Franchisee shall reimburse Bombs Away Franchising for its costs and expenses (including the allocation of any internal costs) for such action, plus 10% as an administrative fee.
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 cooperate with Bombs Away Franchising's evaluators during business evaluations. The evaluation may involve observing operations, conducting physical inventory, assessing physical conditions, monitoring sales activity, speaking with employees and customers, and removing samples of products, supplies, and materials. Bombs Away Franchising may also videotape and/or take photographs during the evaluation. Failure to meet minimum score requirements set by Bombs Away Franchising for evaluations constitutes a default under the Franchise Agreement. Franchisees must correct any deficiencies noted during an evaluation as soon as reasonably practical.
In addition to business evaluations, Bombs Away Franchising has the right to examine and audit all books and records related to the Bombs Away business at any reasonable time. This includes all supporting documentation. The audit can be conducted at the franchise location or the franchisee may be required to deliver copies of the books, records, and supporting documentation to a location designated by Bombs Away Franchising.
Refusal to cooperate with or permit any audit or evaluation by Bombs Away Franchising or its agents or contractors, or otherwise failing to comply with record-keeping and evaluation requirements, can result in a default under the Franchise Agreement. If Bombs Away Franchising conducts an evaluation due to a governmental report, customer complaint, or franchisee non-compliance, the franchisee may be charged for all out-of-pocket expenses plus Bombs Away Franchising's then-current evaluation fee.