Is Bombs Away Franchising obligated to pay amounts owed by the franchisee to suppliers?

According to Bombs Away's 2024 Franchise Disclosure Document, Bombs Away Franchising is not obligated to pay amounts the franchisee owes to suppliers or other third parties. However, Bombs Away Franchising has the option to do so. If Bombs Away Franchising chooses to pay any amount the franchisee owes, the franchisee must repay that amount plus a 10% administrative charge within 15 days of receiving an invoice from Bombs Away Franchising, which will include reasonable documentation.

This means that while Bombs Away franchisees are generally responsible for their own debts to suppliers, Bombs Away Franchising can step in and make payments on their behalf. This could be beneficial to a franchisee who is temporarily short on funds or has a dispute with a supplier. However, franchisees should be aware that Bombs Away Franchising is not required to do this, and if they do, the franchisee will be responsible for repaying the amount plus a 10% administrative fee.

This arrangement could help Bombs Away maintain good relationships with its suppliers by ensuring they are paid promptly, even if a franchisee is struggling financially. However, it also places the risk of non-payment on the franchisee, as Bombs Away Franchising is not obligated to cover their debts. Franchisees should carefully manage their finances and supplier relationships to avoid relying on Bombs Away Franchising to make payments on their behalf.