Is the Bombs Away franchisee required to disclose innovations relating to the business to Bombs Away Franchising?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
- 11.6 Innovations. Franchisee shall disclose to Bombs Away Franchising all ideas, plans, improvements, concepts, methods and techniques relating to the Business (collectively, "Innovations") conceived or developed by Franchisee, its employees, agents or contractors. Bombs Away Franchising will automatically own all Innovations and it will have the right to use and incorporate any Innovations into the System, without any compensation to Franchisee. Franchisee shall execute any documents reasonably requested by Bombs Away Franchising to document Bombs Away Franchising's ownership of Innovations.
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 disclose any innovations related to the business to Bombs Away Franchising. These innovations include any ideas, plans, improvements, concepts, methods, and techniques conceived or developed by the franchisee, their employees, agents, or contractors.
Bombs Away Franchising will automatically own all such innovations and has the right to use and incorporate them into the Bombs Away system without providing any compensation to the franchisee. This means that if a franchisee develops a new, successful method for service delivery or any other improvement to the business, Bombs Away can implement it across the entire franchise system without paying the franchisee for their idea.
Furthermore, the franchisee is obligated to execute any documents reasonably requested by Bombs Away Franchising to formally document Bombs Away Franchising's ownership of these innovations. This ensures that Bombs Away has the legal right to protect and utilize these innovations as they see fit. This is a fairly standard clause in franchise agreements, as it allows the franchisor to maintain consistency and improve the system as a whole, but franchisees should be aware that they will not receive direct compensation for their contributions.