Who will Bombs Away franchisees compete with for customers?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
- (c) Exclusivity. Bombs Away Franchising shall not establish, nor license the establishment of, another business within the Territory or which serves customers located in the Territory selling the same or similar goods or services under the same or similar trademarks or service marks as a Bombs Away business. However, Bombs Away Franchising retains the right to:
- (i) serve (or authorize other franchisees to serve) customers in the Territory if Franchisee is in default, or if Franchisee is incapable of meeting customer demand in the Territory (in Bombs Away Franchising's reasonable opinion);
- (ii) serve (or authorize other franchisees to serve) a particular customer in the Territory if Franchisee fails to properly serve such customer, or if Bombs Away Franchising reasonably believes that Franchisee will not properly serve such customer;
- (iii) establish and license others to establish and operate Bombs Away businesses outside the Territory;
- (iv) operate and license others to operate businesses anywhere that do not operate under the Bombs Away brand name; and
- (v) sell and license others to sell Bombs Away products and services to customers in the Territory through channels of distribution (including the internet) so long as
Source: Item 1 — THE FRANCHISOR AND ANY PARENTS, PREDECESSORS, AND AFFILIATES (FDD pages 7–8)
What This Means (2024 FDD)
Based on the 2024 Franchise Disclosure Document, Bombs Away franchisees may face competition from other businesses, including other Bombs Away franchisees under certain conditions. Bombs Away Franchising, LLC will not establish or license another business within the franchisee's territory that sells the same or similar services under the Bombs Away brand. However, Bombs Away Franchising retains the right to serve customers in the franchisee's territory or authorize other franchisees to do so if the franchisee is in default or incapable of meeting customer demand.
Additionally, Bombs Away Franchising can serve or authorize others to serve a specific customer within the territory if the franchisee fails to properly serve that customer or if Bombs Away Franchising believes the franchisee will not do so. Bombs Away Franchising also retains the right to establish and license Bombs Away businesses outside the franchisee's territory and operate or license businesses anywhere that do not operate under the Bombs Away brand name. Furthermore, Bombs Away Franchising can sell and license others to sell Bombs Away products and services through various distribution channels, including the internet, as long as these products and services are not provided through a Bombs Away outlet in the territory and are different from those offered by the franchisee.
These stipulations mean that while Bombs Away franchisees are granted a protected territory, this protection has limitations. A franchisee could face competition from other Bombs Away franchisees or from Bombs Away Franchising itself under specific circumstances. Moreover, the franchisee may compete with other businesses that offer similar services but operate under a different brand name, as well as online sales of Bombs Away products and services that do not directly overlap with the franchisee's offerings. Therefore, franchisees need to be aware of these potential competitive scenarios and understand the conditions under which Bombs Away Franchising might authorize competition within their territory.