From whom may Bombs Away Franchising require a Bombs Away franchisee to purchase or lease Inputs?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
comply with any code of ethics or statement of values from Bombs Away Franchising. Franchisee shall not take any action which may injure the goodwill associated with the Marks.
ARTICLE 8. SUPPLIERS AND VENDORS
- 8.1 Generally. Franchisee shall acquire all Inputs required by Bombs Away Franchising from time to time in accordance with System Standards. Bombs Away Franchising may require Franchisee to purchase or lease any Inputs from Bombs Away Franchising, Bombs Away Franchising's designee, Required Vendors, Approved Vendors, and/or under Bombs Away Franchising's specifications. Bombs Away Franchising may change any such requirement or change the status of any vendor. To make such requirement or change effective, Bombs Away Franchising shall issue the appropriate System Standards.
- 8.2 Alternate Vendor Approval. If Bombs Away Franchising requires Franchisee to purchase a particular Input only from an Approved Vendor or Required Vendor, and Franchisee desires to purchase the Input from another vendor, then Franchisee must submit a written request for approval and any information, specifications and/or samples requested by Bombs Away Franchising. Bombs Away Franchising may condition its approval on such criteria as Bombs Away Franchising deems appropriate, which may include evaluations of the vendor's capacity, quality, financial stability, reputation, and reliability; inspections; product testing, and performance reviews. Bombs Away Franchising will provide Franchisee with written notification of the approval or disapproval of any proposed new vendor within 30 days after receipt of Franchisee's request.
- 8.3 Alternate Input Approval. If Bombs Away Franchising requires Franchisee to purchase a particular Input, and Franchisee desires to purchase an alternate to the Input, then Franchisee must submit a written request for approval and any information, specifications and/or samples requested by Bombs Away Franchising. Bombs Away Franchising will provide Franchisee with written notification of the approval or disapproval of any proposed alternate Input within 30 days after receipt of Franchisee's request.
- 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.
Source: Item 22 — CONTRACTS (FDD pages 35–36)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, franchisees may be required to purchase or lease inputs from specific sources. Bombs Away Franchising has the authority to mandate that franchisees acquire any required inputs from Bombs Away Franchising itself, Bombs Away Franchising's designee, Required Vendors, Approved Vendors, or according to Bombs Away Franchising's specific specifications.
'Input' is defined broadly as any goods, services, supplies, fixtures, equipment, inventory, computer hardware and software, real estate, or comparable items related to establishing or operating the Business. This gives Bombs Away Franchising considerable control over where franchisees source essential items for their operations.
Bombs Away Franchising retains the right to modify these requirements or change the status of any vendor. To implement such changes, Bombs Away Franchising will issue updated System Standards. If a franchisee wishes to use an alternate vendor or input, they must submit a written request for approval, including any information, specifications, or samples requested by Bombs Away Franchising. Bombs Away Franchising will then provide written notification of approval or disapproval within 30 days of receiving the franchisee's request.