Must a Bombs Away franchisee comply with Bombs Away Franchising's procedures for gift cards and loyalty programs?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
- 7.11 Gift Cards, Loyalty Programs, and Incentive Programs. At its own expense, Franchisee shall sell or otherwise issue gift cards, certificates, or other pre-paid systems, and participate in any customer loyalty programs, membership/subscription programs, or customer incentive programs, designated by Bombs Away Franchising, in the manner specified by Bombs Away Franchising in the Manual or otherwise in writing.
Franchisee shall honor all valid gift cards and other pre-paid systems, regardless of whether issued by Franchisee or another Bombs Away business.
Franchisee shall comply with all procedures and specifications of Bombs Away Franchising related to gift cards, certificates, and other pre-paid systems, or related to customer loyalty, membership/subscription, or customer incentive programs.
Source: Item 22 — CONTRACTS (FDD pages 35–36)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, franchisees must comply with all procedures and specifications related to gift cards, certificates, and other pre-paid systems, as well as customer loyalty, membership/subscription, or customer incentive programs. This means a franchisee doesn't have the freedom to create their own gift card or loyalty program rules. They must adhere to Bombs Away's established guidelines.
This requirement extends to selling or issuing gift cards, certificates, or other pre-paid systems, and participating in any customer loyalty programs, membership/subscription programs, or customer incentive programs designated by Bombs Away. The franchisee is also obligated to honor all valid gift cards and other pre-paid systems, regardless of whether the franchisee or another Bombs Away business issued them.
For a prospective franchisee, this means they need to factor in the costs associated with implementing and maintaining these programs. They must also ensure their point-of-sale systems and staff are properly trained to handle gift cards and loyalty programs according to Bombs Away's standards. Failure to comply with these procedures could result in penalties or other enforcement actions from Bombs Away.
This level of control is common in franchising, as it helps maintain brand consistency and customer experience across all locations. However, it's crucial for franchisees to understand the specific requirements and potential costs involved before signing the franchise agreement.