Must a Bombs Away franchisee participate in customer loyalty programs designated by Bombs Away Franchising?
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 participate in customer loyalty programs designated by Bombs Away Franchising. Specifically, the franchisee must sell or issue gift cards, certificates, or other pre-paid systems, and participate in any customer loyalty programs, membership/subscription programs, or customer incentive programs that Bombs Away designates. This participation must be in the manner specified by Bombs Away in the Manual or in writing. These programs are at the franchisee's own expense.
This requirement ensures that all Bombs Away locations offer a consistent customer experience and participate in brand-wide initiatives to promote customer retention and engagement. It also mandates that franchisees honor all valid gift cards and other pre-paid systems, regardless of whether the franchisee or another Bombs Away business issued them.
Furthermore, the franchisee must comply with all procedures and specifications Bombs Away establishes related to these gift cards, certificates, pre-paid systems, and customer loyalty, membership/subscription, or customer incentive programs. This gives Bombs Away significant control over the structure and execution of these programs, ensuring uniformity across all franchise locations. A prospective franchisee should factor in the costs associated with these programs when evaluating the financial viability of a Bombs Away franchise.