factual

What are franchisees obligated to do during a Bombs Away Franchising evaluation?

Bombs_Away Franchise · 2024 FDD

Answer from 2024 FDD Document

Franchisee shall cooperate with Bombs Away Franchising's evaluators.

The evaluation may include, but is not limited to, observing operations, conducting a physical inventory, evaluating physical conditions, monitoring sales activity, speaking with employees and customers, and removing samples of products, supplies and materials.

Bombs Away Franchising may videotape and/or take photographs of the evaluation.

Bombs Away Franchising may set a minimum score requirement for evaluations, and Franchisee's failure to meet or exceed the minimum score will be a default under this Agreement.

Without limiting Bombs Away Franchising's other rights under this Agreement, Franchisee will, as soon as reasonably practical, correct any deficiencies noted during an evaluation.

If Bombs Away Franchising conducts an evaluation because of a governmental report, customer complaint or other customer feedback, or a default or non-compliance with any System Standard by Franchisee (including following up a previous failed evaluation), then Bombs Away Franchising may charge all out-ofpocket expenses plus its then-current evaluation fee to Franchisee.

Source: Item 22 — CONTRACTS (FDD pages 35–36)

What This Means (2024 FDD)

According to Bombs Away's 2024 Franchise Disclosure Document, franchisees must cooperate with Bombs Away's evaluators during a business evaluation. This evaluation may involve observing operations, conducting a physical inventory, assessing physical conditions, monitoring sales activity, speaking with employees and customers, and removing samples of products, supplies, and materials. Bombs Away Franchising also reserves the right to videotape and/or take photographs during the evaluation.

Bombs Away may set a minimum score requirement for these evaluations, and failure to meet or exceed this score can result in a default under the Franchise Agreement. Franchisees are obligated to correct any deficiencies noted during an evaluation as soon as reasonably practical.

If an evaluation is triggered by a governmental report, customer complaint, or a default/non-compliance issue, Bombs Away may charge the franchisee for all out-of-pocket expenses, plus their then-current evaluation fee. Furthermore, a franchisee's refusal to cooperate with or permit any audit or evaluation by Bombs Away or its agents or contractors, or otherwise fails to comply with Section 10.5 or Section 11.2, can be grounds for termination of the franchise agreement.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.