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

According to Bombs Away's 2024 Franchise Disclosure Document, Bombs Away Franchising retains the authority to address customer complaints concerning a franchisee's business. Specifically, Bombs Away Franchising may take any action it deems appropriate to resolve a customer complaint. Furthermore, Bombs Away Franchising can require the franchisee to reimburse Bombs Away Franchising for any expenses incurred during the resolution of these complaints. This means a franchisee could be financially responsible for costs Bombs Away incurs to rectify issues arising from customer grievances related to the franchisee's Bombs Away business.

In addition to direct reimbursement for complaint resolution, Bombs Away also requires franchisees to participate in programs designed to evaluate customer feedback and ensure compliance with the Bombs Away system. These programs, which include customer feedback systems, surveys, and mystery shopping, are to be undertaken at the franchisee's own expense. Bombs Away shares the results of these programs with the franchisee, and the franchisee must meet or exceed any minimum score requirements set by Bombs Away for these evaluations. Bombs Away may also set minimum score requirements for internet review sites.

Bombs Away also has the right to conduct business evaluations, including observing operations, taking inventory, assessing conditions, monitoring sales, and even speaking with employees and customers. If an evaluation is triggered by a customer complaint, Bombs Away can charge the franchisee for all out-of-pocket expenses, plus their current evaluation fee. Moreover, if a franchisee defaults on any agreement provisions, Bombs Away can take action to correct the default on the franchisee's behalf, with the franchisee required to reimburse Bombs Away for all costs and expenses, including internal costs, plus a 10% administrative fee. These provisions highlight the franchisee's responsibility for maintaining customer satisfaction and adhering to Bombs Away's standards, with potential financial repercussions for failing to do so.