What constitutes a 'material' violation of Section 7.2 (compliance with laws) for a Bombs Away franchise?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
- (v) Franchisee or any Owner commits a material violation of Section 7.2 (compliance with laws) or Section 13.1 (confidentiality), violates Section 13.2 (non-compete) or Article 15 (transfer), or commits any other violation of this Agreement which by its nature cannot be cured;
Source: Item 22 — CONTRACTS (FDD pages 35–36)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, a 'material violation' of Section 7.2 (compliance with laws) is grounds for termination of the franchise agreement. However, the FDD excerpt does not define what specific actions would constitute a 'material violation' of Section 7.2. Instead, it only states that if a franchisee or any owner commits a material violation of Section 7.2, it is grounds for default and termination of the franchise agreement.
This means that the determination of what constitutes a 'material violation' is left to Bombs Away's discretion. This could create uncertainty for franchisees, as they may not know in advance what actions could be considered a material violation and lead to termination.
Prospective franchisees should seek clarification from Bombs Away regarding what specific actions or omissions would be considered a 'material violation' of Section 7.2. Understanding this is crucial, as such a violation could lead to the termination of their franchise agreement.