What are some curable defaults that could lead to termination of a Bombs Away franchise?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
| Provision | Section in franchise or | Summary |
|---|---|---|
| other agreement | ||
| f. Termination by | § 14.2 | We may terminate your franchise |
| franchisor with cause | agreement for cause, subject to any applicable notice and cure opportunity. | |
| g. “Cause” defined-- | Non-payment by you (10 days to cure); |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 28–31)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, there are specific actions or failures that can lead to the termination of the franchise agreement, but which the franchisee has an opportunity to correct. These are termed 'curable defaults.'
The FDD specifies two main curable defaults. The first is non-payment; if a Bombs Away franchisee fails to make required payments, they have 10 days to cure this default. The second curable default is violating the franchise agreement, provided it is not a non-curable default. In this case, the franchisee has 30 days to correct the violation.
It is important for a prospective Bombs Away franchisee to understand the distinction between curable and non-curable defaults, as non-curable defaults do not offer an opportunity to correct the issue before termination. Franchisees should carefully review the franchise agreement to fully understand their obligations and the potential consequences of failing to meet them.