Are Bombs Away franchisees and their owners allowed to violate any agreements by entering into the franchise agreement?

According to Bombs Away's 2024 Franchise Disclosure Document, franchisees and their owners must affirm that they are not violating any existing agreements by entering into the Bombs Away Franchise Agreement. Specifically, the franchisee represents that they and their owners (i) are not violating any agreement (including any confidentiality or non-competition covenant) by entering into or performing under this Agreement, (ii) are not a direct or indirect owner of any Competitor, and (iii) are not listed or "blocked" in connection with, and are not in violation under, any anti-terrorism law, regulation, or executive order. This representation is a condition of being granted a Bombs Away franchise.

This provision protects Bombs Away from potential legal issues that could arise if a franchisee or their owner is already bound by a conflicting agreement. For example, if an owner has signed a non-compete agreement with a different company in the same industry, that agreement could prevent them from fully participating in the Bombs Away franchise. Similarly, existing confidentiality agreements could create conflicts regarding proprietary information.

For a prospective Bombs Away franchisee, this means carefully reviewing all existing agreements to ensure there are no conflicts with the Bombs Away Franchise Agreement. It is essential to disclose any potential conflicts to Bombs Away upfront. Failure to do so could lead to legal complications and potential termination of the franchise agreement. Franchisees should seek legal counsel to review their existing obligations before signing the Bombs Away Franchise Agreement to ensure full compliance.