What are a Bombs Away franchisee's obligations upon termination or non-renewal of the franchise agreement?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
| Provision | Section in franchise or | Summary |
|---|---|---|
| i. Franchisee’s obligations | Pay all amounts due; return Manual and | |
| on termination/non- | ||
| renewal | proprietary items; notify phone, internet, and other providers and transfer service; cease doing business; remove identification; purchase option by us. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 28–31)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, Item 17 details the franchisee's obligations upon termination or non-renewal of the franchise agreement. These obligations include several key actions that a franchisee must undertake to properly conclude their business operations under the Bombs Away brand.
Specifically, the franchisee is required to pay all outstanding amounts owed to the franchisor. Additionally, they must return the operations manual and any other proprietary items that belong to Bombs Away. The franchisee is also obligated to notify all relevant service providers, such as phone and internet companies, to transfer or terminate services and cease conducting business under the Bombs Away name. This includes removing all identification and branding from the business location.
Finally, Bombs Away retains the option to purchase the franchisee's business upon termination or non-renewal, which could have significant financial implications for the franchisee depending on the terms of the purchase option. Franchisees should carefully review the franchise agreement to understand the full scope of these obligations and the potential financial impact of termination or non-renewal.