What is the Bombs Away Franchisee's obligation after ceasing operations due to a dangerous condition?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
- 14.3 Effect of Termination. Upon termination or expiration of this Agreement, all obligations that by their terms or by reasonable implication survive termination, including those pertaining to
non-competition, confidentiality, indemnity, and dispute resolution, will remain in effect, and Franchisee must immediately:
(i) pay all amounts owed to Bombs Away Franchising based on the operation of the Business through the effective date of termination or expiration;
(ii) return to Bombs Away Franchising all copies of the Manual, Confidential Information and any and all other materials provided by Bombs Away Franchising to Franchisee or created by a third party for Franchisee relating to the operation of the Business, and all items containing any Marks, copyrights, and other proprietary items; and delete all Confidential Information and proprietary materials from electronic devices;
(iii) notify the telephone, internet, email, electronic network, directory, and listing entities of the termination or expiration of Franchisee's right to use any numbers, addresses, domain names, locators, directories and listings associated with any of the Marks, and authorize their transfer to Bombs Away Franchising or any new franchisee as may be directed by Bombs Away Franchising, and Franchisee hereby irrevocably appoints Bombs Away Franchising, with full power of substitution, as its true and lawful attorney-in-fact, which appointment is coupled with an interest; to execute such directions and authorizations as may be necessary or appropriate to accomplish the foregoing; and
(iv) cease doing business under any of the Marks.
14.4 Remove Identification. If Franchisee operates from a Location other than Franchisee's home, then within 30 days after termination or expiration, Franchisee shall at its own expense "deidentify" the Location so that it no longer contains the Marks, signage, or any trade dress of a Bombs Away business, to the reasonable satisfaction of Bombs Away Franchising.
Franchisee shall comply with any reasonable instructions and procedures of Bombs Away Franchising for deidentification.
If Franchisee fails to do so within 30 days after this Agreement expires or is terminated, Bombs Away Franchising may enter the Location to remove the Marks and de-identify the Location.
In this event, Bombs Away Franchising will not be charged with trespass nor be accountable or required to pay for any assets removed or altered, or for any damage caused by Bombs Away Franchising.
Source: Item 22 — CONTRACTS (FDD pages 35–36)
What This Means (2024 FDD)
According to the 2024 Bombs Away Franchise Disclosure Document, if the Franchisee's business operations are terminated or the agreement expires, several obligations must be met immediately. The franchisee is required to pay all outstanding amounts owed to Bombs Away Franchising, which are based on the business's operation up to the termination or expiration date. Additionally, all copies of the operations manual, confidential information, and any other materials provided by Bombs Away Franchising, including items with trademarks or copyrights, must be returned. Electronic versions of confidential and proprietary materials must be deleted from all devices.
Furthermore, the franchisee must notify all relevant entities, such as telephone, internet, email, and directory services, about the termination or expiration of their right to use any numbers, addresses, domain names, or listings associated with Bombs Away's marks. The franchisee must authorize the transfer of these assets to Bombs Away Franchising or a new franchisee, and they irrevocably appoint Bombs Away Franchising as their attorney-in-fact to execute these transfers. Finally, the franchisee must cease all business operations under any of Bombs Away's trademarks.
If the Bombs Away franchise operates from a location other than the franchisee's home, the franchisee is responsible for de-identifying the location within 30 days of termination or expiration. This involves removing all Bombs Away marks, signage, and trade dress to Bombs Away Franchising's reasonable satisfaction. The franchisee must follow any reasonable instructions provided by Bombs Away Franchising for this de-identification process. If the franchisee fails to de-identify the location within the specified timeframe, Bombs Away Franchising has the right to enter the premises and remove the marks and de-identify the location themselves, without being held liable for trespass or any damages caused during the process.