May Bombs Away Franchising implement a centralized purchasing system?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
- 8.4 Purchasing. Bombs Away Franchising may negotiate prices and terms with vendors on behalf of the System. Bombs Away Franchising may receive rebates, payments, or other consideration from vendors in connection with purchases by franchisees. Bombs Away Franchising has the right (but not the obligation) to collect payments from Franchisee on behalf of a vendor and remit the payments to the vendor, and to impose a reasonable markup or charge for administering the payment program. Bombs Away Franchising may implement a centralized purchasing system. Bombs Away Franchising may establish a purchasing cooperative and require Franchisee to join and participate in the purchasing cooperative on such terms and conditions as Bombs Away Franchising may determine.
- 8.5 No Liability of Franchisor. Bombs Away Franchising shall not have any liability to Franchisee for any claim or loss related to any product provided or service performed by any Approved Vendor or Required Vendor, including without limitation defects, delays, or unavailability of products or services.
- 8.6 Product Recalls. If Bombs Away Franchising or any vendor, supplier, or manufacturer of an item used or sold in Franchisee's Business issues a recall of such item or otherwise notifies Franchisee that such item is defective or dangerous, Franchisee shall immediately cease using or selling such item, and Franchisee shall at its own expense comply with all instructions from Bombs Away Franchising or the vendor, supplier, or manufacturer of such item with respect to such item, including without limitation the recall, repair, and/or replacement of such item.
Source: Item 22 — CONTRACTS (FDD pages 35–36)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, Bombs Away Franchising has the right to implement a centralized purchasing system. This means that Bombs Away can establish a system where franchisees are required to purchase goods and services through a central entity, potentially offering benefits such as negotiated prices and standardized products. Bombs Away Franchising may also establish a purchasing cooperative and require franchisees to join and participate in it under the terms and conditions Bombs Away Franchising determines.
Bombs Away Franchising may negotiate prices and terms with vendors on behalf of the entire Bombs Away system. Bombs Away Franchising may also receive rebates, payments, or other forms of compensation from vendors based on franchisee purchases. Bombs Away Franchising can collect payments from franchisees on behalf of a vendor and remit those payments to the vendor. Bombs Away Franchising can also impose a reasonable markup or charge for administering this payment program.
However, Bombs Away Franchising will not be liable to the franchisee for any claims or losses related to any product provided or service performed by any Approved Vendor or Required Vendor, including defects, delays, or unavailability of products or services. If Bombs Away Franchising or any vendor, supplier, or manufacturer of an item used or sold in the franchisee's business issues a recall of such item or otherwise notifies the franchisee that such item is defective or dangerous, the franchisee must immediately stop using or selling the item and comply with all instructions from Bombs Away Franchising or the vendor, supplier, or manufacturer regarding the recall, repair, and/or replacement of the item at the franchisee's own expense.