Does the Bombs Away franchise agreement's provisions apply to the owners of a franchise entity?

According to Bombs Away's 2024 Franchise Disclosure Document, if a franchisee is a corporation, limited liability company, or other entity, each owner of the franchise entity must sign Bombs Away's Guaranty and Non-Compete Agreement. This means that all of the franchise agreement's provisions will also apply to the owners of the franchise entity. This requirement ensures that the franchisor, Bombs Away Franchising, LLC, can enforce the franchise agreement's terms not only against the business entity itself but also against the individuals who own and control it.

This provision is crucial for Bombs Away because it provides an additional layer of security and accountability. By having each owner personally guarantee the franchise's obligations and agree to the non-compete terms, Bombs Away reduces the risk of non-compliance or breach of contract. This is a common practice in franchising, as franchisors often seek to ensure that individuals with a vested interest in the franchise's success are also personally bound by the agreement's terms.

For a prospective Bombs Away franchisee, this means that if they choose to operate their franchise through a business entity, they and their co-owners must be prepared to sign personal guarantees and non-compete agreements. This could have significant implications for their personal liability and future business opportunities. Therefore, it is essential for potential franchisees to carefully review these documents and understand the full extent of their obligations before signing the franchise agreement.