Does the Bombs Away franchise agreement allow for non-renewal upon expiration?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
- (8) Permitting the franchisor to fail to renew a franchise without good cause or in bad faith. This chapter shall not prohibit a franchise agreement from providing that the agreement is not renewable upon expiration or that the agreement is renewable if the franchisee meets certain conditions specified in the agreement.
Source: Item 22 — CONTRACTS (FDD pages 35–36)
What This Means (2024 FDD)
According to the 2024 Bombs Away Franchise Disclosure Document, the franchise agreement can be structured to allow non-renewal upon expiration, provided certain conditions are met. Specifically, a Maryland Rider to the franchise agreement states that the chapter does not prohibit a franchise agreement from providing that the agreement is not renewable upon expiration or that the agreement is renewable if the franchisee meets certain conditions specified in the agreement.
This means that Bombs Away has the option to not renew a franchise agreement when it expires, or to set specific conditions that a franchisee must meet to be eligible for renewal. These conditions would be outlined in the franchise agreement itself.
For a prospective Bombs Away franchisee, this highlights the importance of carefully reviewing the franchise agreement to understand the terms for renewal. It is essential to know whether the agreement is structured for non-renewal or what specific conditions must be satisfied to secure a renewal. This knowledge is crucial for long-term business planning and investment decisions.