What are some examples of violations of the Bombs Away franchise agreement that, by their nature, cannot be cured?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
e, or a petition in bankruptcy is filed by Franchisee, or such a petition is filed against or consented to by Franchisee and the petition is not dismissed within 45 days, or Franchisee is adjudicated as bankrupt;
- (iv) Franchisee fails to open for business by the date specified on the Summary Page;
- (v) Franchisee or any Owner commits a material violation of Section 7.2 (compliance with laws) or Section 13.1 (confidentiality), violates Section 13.2 (non-compete) or Article 15 (transfer), or commits any other violation of this Agreement which by its nature cannot be cured;
- (vi) Franchisee abandons or ceases operation of the Business for more than 15 consecutive days;
- (vii) Franchisee or any Owner slanders or libels Bombs Away Franchising or any of its employees, directors, or officers;
Source: Item 22 — CONTRACTS (FDD pages 35–36)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, there are several violations of the franchise agreement that Bombs Away Franchising can terminate without offering an opportunity to cure. These include scenarios where the franchisee's actions are inherently irreversible or damaging to the brand.
Specifically, if a Bombs Away franchisee or any owner commits a material violation of Section 7.2 regarding compliance with laws, violates Section 13.1 concerning confidentiality, violates Section 13.2 related to non-competition, or violates Article 15 pertaining to transfer of the franchise, Bombs Away Franchising can terminate the agreement immediately. Additionally, if a franchisee or owner slanders or libels Bombs Away Franchising or its employees, directors, or officers, this is considered a violation that cannot be cured. Furthermore, if a franchisee or any owner is charged with, pleads guilty or no-contest to, or is convicted of a felony, Bombs Away Franchising can terminate the agreement without a cure period.
Another instance where Bombs Away can terminate the agreement without allowing for a cure is if a franchisee or owner is accused by a governmental authority or third party of any act, or commits any act or series of acts, that in Bombs Away Franchising's opinion is reasonably likely to materially and unfavorably affect the Bombs Away brand. These stipulations highlight the importance of adhering to legal and ethical standards, maintaining confidentiality, and protecting the brand's reputation to avoid immediate termination of the franchise agreement.