Who must the Bombs Away franchisee designate as the 'Principal Executive'?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
- 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 22 — CONTRACTS (FDD pages 35–36)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, the franchisee must designate a 'Principal Executive' who will be primarily responsible for the Bombs Away business and possess decision-making authority on behalf of the franchisee. This individual is identified on the Summary Page of the franchise agreement.
The Principal Executive must have at least a 10% ownership interest in the Bombs Away franchise. Additionally, they are required to actively participate in the direct operation of the business, dedicating substantial time and attention to it. This ensures that the person in charge is invested in and knowledgeable about the day-to-day activities of the franchise.
If the designated Principal Executive dies, becomes incapacitated, transfers their interest, or otherwise ceases to be the executive primarily responsible, the franchisee is obligated to promptly designate a new Principal Executive. This new appointment is subject to Bombs Away Franchising's reasonable approval, ensuring that the replacement meets the franchisor's standards and qualifications. Bombs Away Franchising may also require that the Principal Executive and/or any other employees complete training programs.