Must a Bombs Away franchisee honor all valid gift cards, regardless of who issued them?
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 are required to honor all valid gift cards and other prepaid systems, irrespective of whether the gift cards were issued by their specific franchise location or another Bombs Away business. This requirement is part of the broader stipulations regarding gift cards, loyalty programs, and incentive programs designated by Bombs Away Franchising. Franchisees must also comply with all procedures and specifications set forth by Bombs Away Franchising related to these programs.
This policy ensures consistency and uniformity across the Bombs Away franchise system, providing customers with confidence that their gift cards will be accepted at any location. It also places a responsibility on the franchisee to stay informed about and adhere to all guidelines and procedures related to gift card acceptance and processing. This includes any updates or changes communicated by Bombs Away Franchising in the manual or other written formats.
For a prospective franchisee, this means they must be prepared to accept and process gift cards issued by other Bombs Away locations, which could impact their revenue and accounting practices. It is crucial to understand the specific procedures for gift card reconciliation and reporting to ensure compliance with Bombs Away's system standards. Additionally, franchisees should inquire about any potential liabilities or financial responsibilities associated with honoring gift cards issued by other locations, particularly if those locations cease operations.