In the Bombs Away franchise agreement, what is the effect of Bombs Away Franchising delivering a draft of the agreement to the franchisee?

According to the 2024 Bombs Away Franchise Disclosure Document, the delivery of a draft franchise agreement by Bombs Away Franchising to a prospective franchisee does not constitute an offer. This means that the draft agreement is simply a preliminary document for review and discussion, and it does not obligate either party.

The franchise agreement only becomes effective once it has been formally executed by both the franchisee and Bombs Away Franchising. This ensures that both parties are in complete agreement with the terms and conditions before entering into a binding contract.

This clause protects Bombs Away from being bound to an agreement before they are ready and allows for further negotiation and revisions before the final agreement is signed. For a prospective franchisee, this means they should carefully review the draft agreement and seek legal counsel to fully understand their rights and obligations before signing the final agreement.