factual

What is the effect of termination or expiration of the Bombs Away franchise agreement on the franchisee's obligations?

Bombs_Away Franchise · 2024 FDD

Answer from 2024 FDD Document

  • 14.3 Effect of Termination. Upon termination or expiration of this Agreement, all obligations that by their terms or by reasonable implication survive termination, including those pertaining to

non-competition, confidentiality, indemnity, and dispute resolution, will remain in effect, and Franchisee must immediately:

  • (i) pay all amounts owed to Bombs Away Franchising based on the operation of the Business through the effective date of termination or expiration;

  • (ii) return to Bombs Away Franchising all copies of the Manual, Confidential Information and any and all other materials provided by Bombs Away Franchising to Franchisee or created by a third party for Franchisee relating to the operation of the Business, and all items containing any Marks, copyrights, and other proprietary items; and delete all Confidential Information and proprietary materials from electronic devices;

  • (iii) notify the telephone, internet, email, electronic network, directory, and listing entities of the termination or expiration of Franchisee's right to use any numbers, addresses, domain names, locators, directories and listings associated with any of the Marks, and authorize their transfer to Bombs Away Franchising or any new franchisee as may be directed by Bombs Away Franchising, and Franchisee hereby irrevocably appoints Bombs Away Franchising, with full power of substitution, as its true and lawful attorney-in-fact, which appointment is coupled with an interest; to execute such directions and authorizations as may be necessary or appropriate to accomplish the foregoing; and

  • (iv) cease doing business under any of the Marks.

  • 14.4 Remove Identification. If Franchisee operates from a Location other than Franchisee's home, then within 30 days after termination or expiration, Franchisee shall at its own expense "deidentify" the Location so that it no longer contains the Marks, signage, or any trade dress of a Bombs Away business, to the reasonable satisfaction of Bombs Away Franchising.

Franchisee shall comply with any reasonable instructions and procedures of Bombs Away Franchising for deidentification.

If Franchisee fails to do so within 30 days after this Agreement expires or is terminated, Bombs Away Franchising may enter the Location to remove the Marks and de-identify the Location.

In this event, Bombs Away Franchising will not be charged with trespass nor be accountable or required to pay for any assets removed or altered, or for any damage caused by Bombs Away Franchising.

Source: Item 22 — CONTRACTS (FDD pages 35–36)

What This Means (2024 FDD)

According to Bombs Away's 2024 Franchise Disclosure Document, several obligations persist for the franchisee upon termination or expiration of the franchise agreement. These surviving obligations include those related to non-competition, confidentiality, indemnity, and dispute resolution.

Specifically, the franchisee must immediately pay all outstanding amounts owed to Bombs Away Franchising. They are also required to return all copies of the Manual, Confidential Information, and any other materials provided by Bombs Away Franchising, including items containing trademarks, copyrights, and proprietary information. The franchisee must also delete all Confidential Information and proprietary materials from electronic devices. Furthermore, the franchisee must notify relevant entities (telephone, internet, email, etc.) about the termination or expiration of their right to use any numbers, addresses, domain names, or listings associated with Bombs Away's trademarks and authorize the transfer of these to Bombs Away Franchising or a new franchisee. Finally, the franchisee must cease doing business under any of Bombs Away's trademarks.

If the franchisee operates from a location other than their home, they are responsible for de-identifying the location within 30 days after termination or expiration. This means removing all Bombs Away trademarks, signage, and trade dress to Bombs Away Franchising's reasonable satisfaction. The franchisee must comply with Bombs Away Franchising's instructions for de-identification. If the franchisee fails to do so within 30 days, Bombs Away Franchising has the right to enter the location and de-identify it themselves, without being held liable for trespass or any damages caused during the process.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.