Can a Bombs Away franchisee relocate their business headquarters?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
ee shall develop, open and operate a Bombs Away business in the Territory for the entire term of this Agreement.
2.2 Protected Territory.
- (a) Limitation. Franchisee shall not solicit or market to potential customers outside of the Territory, except for solicitations or marketing which are primarily targeted inside the Territory and which incidentally reach potential customers outside of the Territory.
- (b) Service. Franchisee shall not serve customers outside of the Territory without Bombs Away Franchising's prior written permission. Bombs Away Franchising may withdraw permission at any time. If Franchisee serves a customer outside of the Territory without Bombs Away Franchising's prior written permission, Bombs Away Franchising may impose a fee equal to the greater of (i) $500 or (ii) 75% of the amount paid by such customer to Franchisee. This fee is a reasonable estimate of Bombs Away Franchising's internal cost of personnel time attributable to addressing Franchisee's breach of this Section, and it is not a penalty or estimate of all damages aris
Source: Item 12 — TERRITORY (FDD pages 23–24)
What This Means (2024 FDD)
The 2024 Bombs Away Franchise Disclosure Document does not explicitly address whether a franchisee can relocate their business headquarters. However, the FDD does discuss the franchisee's territory and obligations regarding where they can solicit or serve customers.
Specifically, Bombs Away franchisees are generally restricted from soliciting or marketing to potential customers outside of their designated territory, with exceptions for marketing efforts primarily targeted within the territory that may incidentally reach outside it. Serving customers outside the territory requires prior written permission from Bombs Away Franchising, which can be withdrawn at any time, and may incur a fee equal to the greater of $500 or 75% of the amount paid by the customer.
Given these territorial restrictions, a franchisee considering relocating their business headquarters should seek clarification from Bombs Away Franchising regarding the implications for their territory and customer base. It would be prudent to discuss whether relocation would require an amendment to the franchise agreement or if it would affect the franchisee's ability to operate within their protected territory.