What is the franchisee's obligation if Bombs Away Franchising notes deficiencies during an evaluation?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
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, if Bombs Away Franchising identifies deficiencies during an evaluation of a franchisee's business, the franchisee is obligated to correct these deficiencies as soon as reasonably practical. This requirement is part of Bombs Away's broader rights to evaluate the business, ensuring compliance with system standards and maintaining service quality. Bombs Away may conduct evaluations by observing operations, taking inventory, assessing physical conditions, monitoring sales, and even taking samples or recording the evaluation.
Bombs Away has the right to set minimum score requirements for these evaluations, and failure to meet or exceed these scores constitutes a default under the Franchise Agreement. This underscores the importance of franchisees taking the evaluation process seriously and addressing any identified issues promptly. The evaluation process is not limited to routine checks; Bombs Away may also conduct evaluations based on governmental reports, customer complaints, or previous non-compliance issues.
Furthermore, if an evaluation is triggered by a governmental report, customer complaint, or a default by the franchisee, Bombs Away may charge the franchisee for all out-of-pocket expenses, in addition to their current evaluation fee. This financial implication adds another layer of responsibility for franchisees to maintain standards and address issues proactively. The obligation to correct deficiencies promptly and the potential for additional fees highlight the importance of continuous compliance and operational excellence for Bombs Away franchisees.