Does the continuation of a Bombs Away franchisee's territorial exclusivity depend on any contingency?

According to the 2024 Bombs Away Franchise Disclosure Document, a franchisee's territorial exclusivity does not depend on any contingency. Bombs Away explicitly states that there are no circumstances under which they can modify a franchisee's territorial rights. This means that once a territory is granted, Bombs Away cannot reduce its size or grant another franchise within that territory, provided the franchisee remains in compliance with the franchise agreement.

However, Bombs Away retains certain rights within a franchisee's territory. They may serve customers directly or authorize other franchisees to do so if the franchisee is in default or incapable of meeting customer demand. Bombs Away can also serve specific customers if the franchisee fails to serve them properly or if Bombs Away believes the franchisee will not do so. Additionally, Bombs Away reserves the right to use other distribution channels, such as the internet or direct marketing, to make sales within the territory, provided they are for different products or services than those offered by the franchisee and use different trademarks.

While Bombs Away grants an exclusive territory, the franchisee is restricted from soliciting or marketing to potential customers outside of their territory, except for solicitations primarily targeted inside the territory that incidentally reach outside. Serving customers outside the territory requires prior written permission from Bombs Away, which can be withdrawn at any time. If a franchisee serves a customer outside their territory without permission, Bombs Away may impose a fee equal to the greater of $500 or 75% of the amount paid by the customer to the franchisee.

Bombs Away also retains the right to set policies regarding soliciting, marketing, and serving customers in another franchisee's territory and may waive or modify these policies as they determine. If a franchisee obtains a customer in another franchisee's protected territory, Bombs Away may require the franchisee to transfer the customer, pay the other franchisee 75% of the gross sales from that customer, or fashion another appropriate remedy. These provisions highlight the importance of adhering to the defined territory and respecting the boundaries of other franchisees.