Can Bombs Away Franchising require a Bombs Away franchisee to reimburse expenses related to resolving customer complaints?

According to Bombs Away's 2024 Franchise Disclosure Document, franchisees may be required to reimburse Bombs Away Franchising for expenses incurred while resolving customer complaints. Specifically, Bombs Away Franchising retains the right to take action it deems necessary to address customer complaints about the franchisee's business. If Bombs Away Franchising resolves a customer complaint, the franchisee may have to reimburse Bombs Away Franchising for any expenses incurred during the resolution process.

In addition to direct reimbursement, Bombs Away franchisees must participate in programs designed to evaluate customer feedback and compliance with Bombs Away's system standards. These programs, which include customer feedback systems, surveys, and mystery shopping, are at the franchisee's expense. Bombs Away Franchising will share the results of these programs with the franchisee, and the franchisee must meet or exceed any minimum score requirements set by Bombs Away Franchising for these programs and also on public internet review sites.

Bombs Away Franchising can also conduct business evaluations, including observing operations, inventory, and speaking with employees and customers. If an evaluation is triggered by a customer complaint, Bombs Away Franchising can charge the franchisee for all out-of-pocket expenses plus an evaluation fee. Furthermore, if a franchisee defaults on any agreement provisions, Bombs Away Franchising can take action to correct the default on the franchisee's behalf, with the franchisee required to reimburse Bombs Away Franchising for all costs, expenses, and an additional 10% administrative fee.