Does Bombs Away Franchising have any liability for a franchisee's obligations to third parties?
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.
- 18.2 No Third-Party Beneficiaries. This Agreement does not confer any rights or remedies upon any person or entity other than Franchisee, Bombs Away Franchising, and Bombs Away Franchising's affiliates.
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 is not liable for a franchisee's obligations to third parties. The franchise agreement specifies that the franchisee is an independent contractor and not an agent, partner, joint venturer, or employee of Bombs Away Franchising.
This means that franchisees are responsible for their own debts, contracts, and legal obligations. Bombs Away Franchising's specifications and standards are in place to protect its interest in the system, marks, and goodwill, and do not establish control over the franchisee's business operations.
Furthermore, the franchise agreement explicitly states that it does not confer any rights or remedies upon any person or entity other than the franchisee, Bombs Away Franchising, and Bombs Away Franchising's affiliates. This reinforces the separation of liability between Bombs Away Franchising and its franchisees.