For a Bombs Away franchise, am I required to personally conduct on-premises supervision when my business performs services for a customer?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
ner's interest in Franchisee. If any of this information changes, Franchisee shall notify Franchisor within 10 days.
- 2.4 Principal Executive. Franchisee agrees that the person designated as the "Principal Executive" on the Summary Page is the executive primarily responsible for the Business and has decision-making authority on behalf of Franchisee. The Principal Executive must have at least 10% ownership interest in Franchisee. The Principal Executive must participate in the direct operation of the Business and must devote substantial time and attention to the Business. If the Principal Executive dies, becomes incapacitated, transfers his/her interest in Franchisee, or otherwise ceases to be the executive primarily responsible for the Business, Franchisee shall promptly designate a new Principal Executive, subject to Bombs Away Franchising's reasonable approval.
Source: Item 15 — Obligation to Participate in the Actual Operation of the Franchise Business (FDD pages 26–27)
What This Means (2024 FDD)
According to the 2024 Bombs Away Franchise Disclosure Document, the franchisee's role in on-premises supervision is addressed through the designation of a 'Principal Executive.' This individual must have at least a 10% ownership interest in the franchise and is required to participate in the direct operation of the business, devoting substantial time and attention to it. This suggests that while day-to-day, on-site supervision isn't explicitly mandated, the Principal Executive must be actively involved in the business.
Furthermore, Bombs Away Franchising retains the right to conduct business evaluations, potentially accompanying the franchisee or their personnel during customer service activities. These evaluations can include observing operations and speaking with employees and customers. While these evaluations don't dictate that the franchisee must personally supervise every service, they do emphasize the importance of adherence to Bombs Away's standards and the franchisee's responsibility in ensuring quality service.
Ultimately, while Bombs Away doesn't mandate constant on-site supervision by the franchisee, the requirements for a Principal Executive and the possibility of franchisor-led evaluations imply a need for active franchisee involvement in overseeing operations and maintaining service quality. A prospective franchisee should clarify with Bombs Away the expected level of direct involvement and supervision, and how this aligns with their operational plans.