What is the Bombs Away franchisee prohibited from doing with the Marks after termination or expiration?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
- 14.3 Effect of Termination. Upon termination or expiration of this Agreement, all obligations that by their terms or by reasonable implication survive termination, including those pertaining to
non-competition, confidentiality, indemnity, and dispute resolution, will remain in effect, and Franchisee must immediately:
(iv) cease doing business under any of the Marks.
14.4 Remove Identification. If Franchisee operates from a Location other than Franchisee's home, then within 30 days after termination or expiration, Franchisee shall at its own expense "deidentify" the Location so that it no longer contains the Marks, signage, or any trade dress of a Bombs Away business, to the reasonable satisfaction of Bombs Away Franchising.
Franchisee shall comply with any reasonable instructions and procedures of Bombs Away Franchising for deidentification.
If Franchisee fails to do so within 30 days after this Agreement expires or is terminated, Bombs Away Franchising may enter the Location to remove the Marks and de-identify the Location.
In this event, Bombs Away Franchising will not be charged with trespass nor be accountable or required to pay for any assets removed or altered, or for any damage caused by Bombs Away Franchising.
Source: Item 22 — CONTRACTS (FDD pages 35–36)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, upon termination or expiration of the franchise agreement, the franchisee must cease doing business under any of the Marks. Additionally, if the franchisee operates from a location other than their home, they are required to remove all Marks, signage, and any trade dress of a Bombs Away business from the location within 30 days of termination or expiration, at their own expense. This de-identification must be to the reasonable satisfaction of Bombs Away.
This means that a franchisee cannot continue to operate a similar business using the Bombs Away brand or any confusingly similar branding after the agreement ends. This includes physical locations and any form of advertising or online presence. The franchisee is responsible for all costs associated with removing the Bombs Away branding from their former business location.
Bombs Away Franchising also has the right to enter the location to remove the Marks and de-identify the location if the franchisee fails to do so within 30 days after the agreement expires or is terminated. In this case, Bombs Away Franchising will not be charged with trespass nor be accountable or required to pay for any assets removed or altered, or for any damage caused by Bombs Away Franchising.
These stipulations are typical in franchising to protect the brand's integrity and prevent confusion among customers. Prospective franchisees should be aware of these obligations and factor in the potential costs of de-identification when considering the franchise opportunity.