Does Bombs Away Franchising have any liability to the franchisee for service issues from approved vendors?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
- 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.
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 no liability to the franchisee for any issues related to approved vendors. Specifically, Bombs Away Franchising will not be liable for any claim or loss related to any product provided or service performed by any Approved Vendor or Required Vendor. This includes, but is not limited to, defects, delays, or unavailability of products or services.
This means that as a Bombs Away franchisee, you assume the risk of any problems arising from the products or services provided by approved vendors. Even if Bombs Away Franchising has negotiated prices and terms with these vendors, or even receives payments or rebates from them, they are not responsible for the vendor's performance.
This is a fairly standard clause in franchise agreements, as franchisors typically want to avoid being held liable for the actions of independent vendors. However, it is important for a prospective Bombs Away franchisee to carefully evaluate the approved vendors and consider the potential risks associated with using them. It would be prudent to inquire about the vendor selection process and any due diligence Bombs Away Franchising conducts to ensure vendor reliability.