Does the Bombs Away franchise agreement prohibit Bombs Away from operating or franchising a business under a different trademark that sells similar goods or services?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
Neither we nor any of our affiliates operates, franchises, or has plans to operate or franchise a business under a different trademark selling goods or services similar to those you will offer. However, the franchise agreement does not prohibit us from doing so.
Source: Item 12 — TERRITORY (FDD pages 23–24)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, the franchise agreement does not prohibit Bombs Away from operating or franchising a business under a different trademark that offers similar goods or services to those offered by its franchisees.
This means that Bombs Away retains the right to operate or franchise other businesses, even if they compete directly with existing Bombs Away franchisees, as long as those businesses do not operate under the Bombs Away brand name. This could potentially impact a franchisee's market share and profitability if Bombs Away introduces a competing brand in the same area.
Prospective franchisees should be aware of this clause and consider the potential risks associated with Bombs Away's ability to operate competing businesses under different trademarks. It would be prudent to discuss this aspect with Bombs Away during the due diligence process to understand their long-term strategy and potential impact on franchisees.