What criteria must a Bombs Away franchisee meet to expand into additional territory?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
You do not have the right to establish additional franchised outlets or expand into additional territory. If you desire to do so, you must (1) meet our then-current criteria for new franchisees, (2) be in compliance with your franchise agreement at all times since opening your business, (3) have demonstrated your capability to operate a multi-territory franchise successfully, and (4) obtain our agreement.
Source: Item 12 — TERRITORY (FDD pages 23–24)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, a franchisee does not automatically have the right to establish additional franchised outlets or expand into additional territory. To do so, a franchisee must meet several requirements.
First, the franchisee must meet Bombs Away's then-current criteria for new franchisees, which suggests that the franchisee will be evaluated as if they were a brand new applicant. Second, the franchisee must have been in compliance with their franchise agreement at all times since opening their business, indicating a need for a strong operational and legal track record. Third, the franchisee must have demonstrated their capability to operate a multi-territory franchise successfully, implying a need to show proven success in managing a larger operation.
Finally, the franchisee must obtain Bombs Away's agreement, meaning that even if all other criteria are met, the franchisor still has the final say in whether or not the franchisee can expand. This ensures that Bombs Away maintains control over its brand and market development. A prospective franchisee should inquire about the specific, objective metrics Bombs Away uses to evaluate these criteria, as this information is not detailed in this section of the FDD.