Does a Bombs Away franchisee have the right to establish additional franchised outlets within their existing territory?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
You may relocate your business headquarters anywhere in your territory.
You do not have the right to establish additional franchised outlets or expand into additional territory. If you desire to do so, you must (1) meet our then-current criteria for new franchisees, (2) be in compliance with your franchise agreement at all times since opening your business, (3) have demonstrated your capability to operate a multi-territory franchise successfully, and (4) obtain our agreement.
Source: Item 12 — TERRITORY (FDD pages 23–24)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, franchisees do not automatically have the right to establish additional franchised outlets or expand into additional territories. To do so, a franchisee must meet several requirements.
First, the franchisee must meet Bombs Away's then-current criteria for new franchisees. Second, they must be in compliance with their franchise agreement at all times since opening their business. Third, the franchisee must demonstrate their capability to successfully operate a multi-territory franchise. Finally, the franchisee must obtain Bombs Away's agreement to expand.
This policy means that existing Bombs Away franchisees who wish to grow their business by opening additional locations must essentially re-qualify as if they were a new franchisee, and even then, Bombs Away retains the right to deny the request. This contrasts with some franchise systems that offer existing franchisees a right of first refusal or other preferential treatment when expanding.