What are some examples of non-curable defaults that could lead to the termination of my 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); | |
| curable defaults | violate franchise agreement other than non- curable default (30 days to cure). | |
| h. “Cause” defined--non- | Misrepresentation when applying to be a | |
| curable defaults | franchisee; knowingly submitting false information; bankruptcy; violation of law; violation of confidentiality; violation of non-compete; violation of transfer restrictions; slander or libel of us; refusal to cooperate with our audit or evaluation; cease operations for more than 15 consecutive days; three defaults in 12 months; cross-termination; conviction of, or plea to, a felony, commit or be accused of an act that is reasonably likely to materially and unfavorably affect our brand; any other breach of franchise agreement which by its nature cannot be cured. | |
| i. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 28–31)
What This Means (2024 FDD)
According to the 2024 Bombs Away Franchise Disclosure Document, there are certain defaults that cannot be cured, which could lead to the termination of your franchise agreement. These include misrepresentation when applying to become a franchisee or knowingly submitting false information. Filing for bankruptcy, violating any law, breaching confidentiality, or violating non-compete agreements also constitute non-curable defaults.
Further, engaging in slander or libel against Bombs Away, refusing to cooperate with an audit or evaluation by the company, or ceasing operations for more than 15 consecutive days are considered non-curable defaults. Accumulating three defaults within a 12-month period or experiencing cross-termination (termination of another related agreement) also fall into this category.
Finally, if a Bombs Away franchisee is convicted of, or pleads to, a felony, or commits or is accused of an act that is reasonably likely to materially and unfavorably affect the Bombs Away brand, it is considered a non-curable default. Any other breach of the franchise agreement that, by its nature, cannot be cured will also result in termination.