What constitutes 'good cause' for Bombs Away to terminate a franchise agreement?

According to Bombs Away's 2024 Franchise Disclosure Document, 'good cause' for termination includes any material violation of the franchise agreement. Bombs Away can terminate the agreement if a franchisee fails to make payments when due and does not cure the non-payment within 10 days of notice. Additionally, if a franchisee breaches the agreement in a manner not specifically related to payment, Bombs Away can terminate the agreement if the franchisee fails to resolve the breach within 30 days after receiving notice.

Bombs Away may also terminate the agreement without allowing the franchisee an opportunity to cure the issue if the franchisee misrepresents or omits material facts when applying to become a franchisee or breaches any representation made in the agreement. Termination without a cure period is also possible if the franchisee knowingly submits false reports or provides false information to Bombs Away. Furthermore, Bombs Away can terminate the agreement without a cure period if the franchisee becomes bankrupt, fails to open for business by the date specified, commits a material violation regarding compliance with laws or confidentiality, violates non-compete agreements or transfer restrictions, abandons the business for more than 15 consecutive days, or slanders Bombs Away or its employees.

Additional reasons for termination without a cure period include refusing to cooperate with audits, operating the business in a way that endangers health or safety without rectifying it within 48 hours, receiving two or more default notices within a 12-month period and then committing another breach, termination of another agreement with the franchisee due to a breach of that agreement, being charged with or convicted of a felony, or committing any act that could negatively affect the Bombs Away brand. These stipulations provide Bombs Away with broad authority to terminate the franchise agreement under various circumstances, highlighting the importance for franchisees to adhere strictly to the terms of the agreement.