Can Bombs Away Franchising unreasonably withhold written approval to open the Business?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
- 6.3 Conditions to Opening. Franchisee shall notify Bombs Away Franchising at least 30 days before Franchisee intends to open the Business. Before opening, Franchisee must satisfy all of the following conditions: (1) Franchisee is in compliance with this Agreement, (2) Franchisee has obtained all applicable governmental permits and authorizations, (3) the Business conforms to all applicable System Standards, (4) Franchisee has hired sufficient employees, (5) Franchisee's officers and employees have completed all of Bombs Away Franchising's required pre-opening training; and (6) Bombs Away Franchising has given its written approval to open, which will not be unreasonably withheld.
Source: Item 22 — CONTRACTS (FDD pages 35–36)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, Bombs Away Franchising's written approval to open the Business will not be unreasonably withheld.
Specifically, before opening their Bombs Away business, a franchisee must meet several conditions, including compliance with the Franchise Agreement, obtaining necessary governmental permits, conforming to System Standards, hiring sufficient employees, and completing required pre-opening training for officers and employees. Only after meeting these conditions will Bombs Away provide written approval to open the business.
This stipulation protects prospective Bombs Away franchisees, ensuring that Bombs Away cannot arbitrarily delay or prevent them from opening if they have met all specified requirements. It also implies that if Bombs Away withholds approval, they must have a reasonable, justifiable basis for doing so, which provides a degree of recourse for the franchisee.
This condition is fairly standard in franchising, as franchisors typically want to ensure that franchisees are adequately prepared and meet certain standards before commencing operations to protect the brand and system-wide reputation.