Can Bombs Away Franchising set policies binding on all franchisees regarding soliciting customers in another franchisee's territory?

According to Bombs Away's 2024 Franchise Disclosure Document, Bombs Away Franchising has the authority to set policies binding on all franchisees concerning soliciting, marketing, and serving customers in another franchisee's territory. Bombs Away Franchising also retains the right to waive or modify these policies as it sees fit.

If a Bombs Away franchisee obtains a customer within another franchisee's protected territory, Bombs Away Franchising has several options. It can require the franchisee to transfer the customer to the franchisee whose territory was encroached upon. Alternatively, Bombs Away Franchising can mandate that the franchisee who obtained the customer pays the other franchisee 75% of the gross sales received from that customer. Bombs Away Franchising can also implement any other remedy it deems appropriate.

This policy has significant implications for prospective Bombs Away franchisees. While franchisees are granted a protected territory, their ability to solicit customers outside of that territory is subject to Bombs Away Franchising's policies. If a franchisee does obtain customers from another's territory, they may be required to cede the customer or pay a significant portion of the revenue to the other franchisee. This highlights the importance of understanding the specific policies Bombs Away Franchising has in place regarding territorial boundaries and customer solicitation.