Does the Bombs Away franchise agreement waive the right to act on a class-wide basis for claims?

According to Bombs Away's 2024 Franchise Disclosure Document, the franchise agreement includes a waiver of class actions. This means that any claims arising from or related to the agreement must be pursued on an individual basis. Franchisees waive their right to participate in a class action lawsuit against Bombs Away. This waiver applies to arbitrations, litigation, or any other method of resolving disputes.

This waiver has significant implications for prospective franchisees. It prevents them from joining forces with other franchisees to pursue collective legal action against Bombs Away, even if there are common grievances. Each franchisee must individually bear the costs and risks associated with pursuing a claim. This could be a disadvantage, especially if the damages suffered by an individual franchisee are relatively small, making individual legal action less economically feasible.

Class action waivers are relatively common in franchise agreements. They are intended to protect the franchisor from large-scale, costly litigation. However, franchisees should carefully consider the implications of such waivers and assess their potential impact on their ability to seek redress for grievances. Franchisees may want to seek legal counsel to fully understand the scope and enforceability of the class action waiver before signing the franchise agreement.

It is important to note that the waiver does not prevent franchisees from pursuing individual claims against Bombs Away. It simply requires that such claims be pursued separately, rather than as part of a class action. Additionally, the FDD states that any legal action related to the agreement must be initiated within two years of discovering the event that led to the action.