Does Bombs Away Franchising control or have the right to control the franchisee's Bombs Away business?

According to the 2024 Bombs Away Franchise Disclosure Document, Bombs Away Franchising states that it does not control or have the right to control the franchisee or its business. However, this statement is qualified by the fact that required specifications and standards exist within the franchise agreement and system standards. These standards are in place to protect Bombs Away's interest in its system, marks, and associated goodwill, rather than to exert direct control over the franchisee's day-to-day operations.

Despite the disclaimer of direct control, Bombs Away retains significant authority over various aspects of the franchise. For instance, Bombs Away Franchising may set policies binding on all franchisees regarding soliciting, marketing, and serving customers, even in another franchisee's territory. They can also set policies regarding referral fees between Bombs Away businesses. If a franchisee obtains a customer in another franchisee's protected territory, Bombs Away Franchising has the discretion to require the franchisee to transfer the customer, pay 75% of the gross sales from that customer to the other franchisee, or implement another remedy they deem appropriate.

Furthermore, Bombs Away Franchising retains ownership of all customer data and non-public data generated by the business, licensing it back to the franchisee for use during the agreement term. Bombs Away also automatically owns all ideas, plans, improvements, concepts, methods, and techniques related to the business conceived or developed by the franchisee, its employees, agents, or contractors, without any compensation to the franchisee. Bombs Away Franchising can also conduct business evaluations, including observing operations, taking inventory, and speaking with employees and customers, and may set minimum score requirements for these evaluations, with failure to meet the minimum score constituting a default under the agreement. These provisions, while not framed as direct control, allow Bombs Away to significantly influence and monitor the franchisee's business practices and performance.

In certain situations, Bombs Away Franchising has the right to act on behalf of the franchisee. If a franchisee breaches the agreement, Bombs Away may take action to cure the default without liability. The franchisee is then required to reimburse Bombs Away for all costs and expenses incurred, plus a 10% administrative fee. Additionally, if Bombs Away discovers any aspect of the business that poses an imminent danger to health or safety, it can order the franchisee to temporarily cease operations until the dangerous condition is remedied. These rights provide Bombs Away with considerable power to intervene in the operation of the franchise to ensure compliance and protect the system's integrity.