Is Bombs Away franchisees' compliance with minimum wage laws a condition of operating the franchise?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
- 7.2 Compliance with Law. Franchisee and the Business shall comply with all laws and regulations. Franchisee and the Business shall obtain and keep in force all governmental permits and licenses necessary for the Business.
Source: Item 1 — THE FRANCHISOR AND ANY PARENTS, PREDECESSORS, AND AFFILIATES (FDD pages 7–8)
What This Means (2024 FDD)
According to the 2024 Bombs Away FDD, franchisees must comply with all laws and regulations to operate their business. Specifically, Section 7.2 states that the franchisee and the business must comply with all laws and regulations and obtain and keep all necessary governmental permits and licenses.
This means that Bombs Away franchisees are responsible for adhering to all applicable laws, including minimum wage laws, and maintaining all required permits and licenses. Failure to comply with these legal requirements could result in a breach of the franchise agreement.
Section 14.2 outlines events that can result in termination of the franchise agreement. One of these events is if the franchisee commits a material violation of Section 7.2 (compliance with laws). Therefore, non-compliance with minimum wage laws could be grounds for Bombs Away to terminate the franchise agreement.