Is a Bombs Away franchisee restricted to selling only approved goods and services?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
ng. Bombs Away Franchising will provide Franchisee with written notification of the approval or disapproval of any proposed alternate Input within 30 days after receipt of Franchisee's request.
- 8.4 Purchasing. Bombs Away Franchising may negotiate prices and terms with vendors on behalf of the System. Bombs Away Franchising may receive rebates, payments, or other consideration from vendors in connection with purchases by franchisees. Bombs Away Franchising has the right (but not the obligation) to collect payments from Franchisee on behalf of a vendor and remit the payments to the vendor, and to impose a reasonable markup or charge for administering the payment program. Bombs Away Franchising may implement a centralized purchasing system. Bombs Away Franchising may establish a purchasing cooperative and require Franchisee to join and participate in the purchasing cooperative on such terms and conditions as Bombs Away Franchising may determine.
- 8.5 No Liability of Franchisor. Bombs Away Franchising shall not have any liability to Franchisee for any claim or loss related to any product provided or service performed by any Approved Vendor or Required Vendor, including without limitation defects, delays, or unavailability of products or services.
- 8.6 Product Recalls. If Bombs Away Franchising or any vendor, supplier, or manufacturer of an item used or sold in Franchisee's Business issues a recall of such item or otherwise notifies Franchisee that such item is defective or dangerous, Franchisee shall immediately cease using or selling such item, and Franchisee shall at its own expense comply with all instructions from Bombs Away Franchising or the vendor, supplier, or manufacturer of such item with respect to such item, including without limitation the recall, repair, and/or replacement of such item.
ARTICLE 9. MARKETING
- 9.1 Approval and Implementation. Franchisee shall not conduct any marketing, advertising or public relations activities (including websites, online advertising, social media marketing or presence, and sponsorships) that have not been approved by Bombs Away Franchising. Bombs Away Franchising may (but is not obligated to) operate all "social media" accounts on behalf of the System, or it may permit franchisees to operate one or more accounts. Franchisee must comply with any System Standards regarding marketing, advertising, and public relations, include any social media policy that Bombs Away Franchising may prescribe.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD pages 27–28)
What This Means (2024 FDD)
According to the 2024 Bombs Away Franchise Disclosure Document, franchisees are restricted to purchasing from approved suppliers. Bombs Away may negotiate prices with vendors on behalf of the system and receive rebates from these vendors related to franchisee purchases. Bombs Away has the right to collect payments from franchisees on behalf of a vendor and may impose a markup for administering this payment program. Bombs Away may also implement a centralized purchasing system or establish a purchasing cooperative that franchisees are required to join.
If a Bombs Away franchisee wants to use a supplier that is not on the approved list, they must request approval in writing. Approvals of suppliers are based on criteria appropriate to the situation, including evaluations of the supplier's capacity, quality, financial stability, reputation, and reliability; inspections; product testing; and performance reviews. These criteria for approving suppliers are not available to franchisees. Bombs Away will provide written notification of the approval or disapproval of any supplier within 30 days after receiving the request.
Bombs Away also issues specifications and standards for applicable aspects of the franchise in their Manual and/or in written directives, which they may revise at any time. These revisions are generally issued after thorough testing in headquarters, company-owned outlets, and/or limited market tests in multiple units. Bombs Away states that they do not derive revenue from required purchases and leases by franchisees, but they reserve the right to be a supplier (or the sole supplier) of a good or service in the future.