Does the Bombs Away franchisee have the right to offset or deduct any amounts from payments owed to Bombs Away Franchising?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
(g) Obligations Independent; No Set-Off. The obligations of Franchisee to pay to Bombs Away Franchising any fees or amounts described in this Agreement are not dependent on Bombs Away Franchising's performance and are independent covenants by Franchisee. Franchisee shall make all such payments without offset or deduction.
Source: Item 22 — CONTRACTS (FDD pages 35–36)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, franchisees are explicitly prohibited from offsetting or deducting any amounts from payments owed to Bombs Away Franchising. The franchise agreement stipulates that the franchisee's obligation to pay fees and other amounts is independent of Bombs Away's performance and constitutes an independent covenant. This means franchisees cannot withhold payments due to any perceived shortcomings in the services or support provided by Bombs Away.
This provision protects Bombs Away's revenue stream and ensures consistent payments from all franchisees, regardless of individual disputes or issues. It is a fairly standard clause in franchise agreements, designed to maintain financial stability for the franchisor.
For a prospective Bombs Away franchisee, this means understanding and accepting that all payments must be made on time and in full, irrespective of any disagreements or perceived failures on the part of Bombs Away. Failure to comply with this provision could result in penalties, legal action, or even termination of the franchise agreement. Franchisees who anticipate needing flexibility in payment terms due to potential disputes should carefully consider this restriction before investing in a Bombs Away franchise.