What is a franchisee required to do if deficiencies are noted during a Bombs Away evaluation?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
Without limiting Bombs Away Franchising's other rights under this Agreement, Franchisee will, as soon as reasonably practical, correct any deficiencies noted during an evaluation.
If Bombs Away Franchising conducts an evaluation because of a governmental report, customer complaint or other customer feedback, or a default or non-compliance with any System Standard by Franchisee (including following up a previous failed evaluation), then Bombs Away Franchising may charge all out-ofpocket expenses plus its then-current evaluation fee to Franchisee.
- 11.3 Bombs Away Franchising's Right to Cure. If Franchisee breaches or defaults under any provision of this Agreement, Bombs Away Franchising may (but has no obligation to) take any action to cure the default on behalf of Franchisee, without any liability to Franchisee.
Franchisee shall reimburse Bombs Away Franchising for its costs and expenses (including the allocation of any internal costs) for such action, plus 10% as an administrative fee.
Source: Item 22 — CONTRACTS (FDD pages 35–36)
What This Means (2024 FDD)
According to the 2024 Bombs Away Franchise Disclosure Document, a franchisee is required to correct any deficiencies noted during an evaluation as soon as reasonably practical. Bombs Away Franchising may conduct evaluations by accompanying the franchisee or their personnel during services for a customer, or by entering the business premises during normal hours. These evaluations can include observing operations, physical inventory, assessing conditions, monitoring sales, speaking with employees and customers, and taking samples. Bombs Away Franchising is also permitted to videotape or photograph the evaluation.
Bombs Away Franchising may set a minimum score for evaluations, and failure to meet this score constitutes a default under the Franchise Agreement. If an evaluation is triggered by a governmental report, customer complaint, or the franchisee's non-compliance with System Standards, Bombs Away Franchising may charge the franchisee for all out-of-pocket expenses plus an evaluation fee.
In the event that a franchisee breaches or defaults under any provision of the agreement, Bombs Away Franchising has the option to take action to correct the default on behalf of the franchisee, without any liability. The franchisee is then required to reimburse Bombs Away Franchising for all costs and expenses incurred, including a 10% administrative fee.