Does Bombs Away Franchising have a fiduciary duty to the franchisee?

According to Bombs Away's 2024 Franchise Disclosure Document, Bombs Away Franchising is not a fiduciary of the franchisee. The franchise agreement specifies that the relationship between Bombs Away Franchising and its franchisees is that of independent contractors. This means that neither party is the agent, partner, joint venturer, or employee of the other. Bombs Away Franchising explicitly states it does not control or have the right to control the franchisee's business.

Bombs Away Franchising clarifies that any specifications and standards outlined in the franchise agreement and System Standards are designed to protect Bombs Away Franchising's interest in the System and the Marks, as well as the goodwill established in them. These standards are not intended to establish control over the franchisee's business or create a duty to take control. Furthermore, Bombs Away Franchising assumes no liability for the franchisee's obligations to any third party.

This arrangement is typical in franchising, where franchisors and franchisees maintain distinct legal and financial responsibilities. Franchisees should understand that they operate independently and are responsible for their own business decisions and obligations. While Bombs Away sets standards and provides support, the franchisee is ultimately in charge of their business's success and compliance.