Will Bombs Away Franchising consider a Bombs Away franchisee's employee to be an agent of Bombs Away Franchising?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
- 18.1 Relationship of the Parties. The parties are independent contractors, and neither is the agent, partner, joint venturer, or employee of the other. Bombs Away Franchising is not a fiduciary of Franchisee. Bombs Away Franchising does not control or have the right to control Franchisee or its Business. Any required specifications and standards in this Agreement and in the System Standards exist to protect Bombs Away Franchising's interest in the System and the Marks, and the goodwill established in them, and not for the purpose of establishing any control, or duty to take control, over the Business. Bombs Away Franchising has no liability for Franchisee's obligations to any third party whatsoever.
Source: Item 22 — CONTRACTS (FDD pages 35–36)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, the agreement explicitly states that the relationship between the franchisee and Bombs Away Franchising is that of independent contractors. Specifically, neither party is considered an agent, partner, joint venturer, or employee of the other. This distinction is crucial as it clarifies that Bombs Away Franchising does not control, nor have the right to control, the franchisee's business operations.
Bombs Away Franchising includes required specifications and standards in the agreement and System Standards to protect its interest in the System, the Marks, and the goodwill established in them. These standards are not intended to establish control over the franchisee's business. Furthermore, Bombs Away Franchising bears no liability for the franchisee's obligations to any third party.
This independent contractor relationship has several implications for a prospective Bombs Away franchisee. It means the franchisee has significant autonomy in running their business, but it also carries the responsibility for all business obligations and liabilities. The franchisee is responsible for their employees and ensuring compliance with all applicable laws and regulations. Bombs Away Franchising's specifications and standards are in place to maintain brand consistency and protect the overall system, but they do not create an agency relationship.