Can Bombs Away Franchising unreasonably withhold its 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 the Business, the 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 these conditions are met will Bombs Away provide its written approval to open the Business.
This stipulation protects prospective Bombs Away franchisees, ensuring that Bombs Away cannot arbitrarily delay or prevent the opening of a franchise location once the franchisee has fulfilled all the stipulated requirements. It also provides a degree of legal recourse if a franchisee believes that Bombs Away is acting in bad faith by withholding approval without a legitimate reason. This is a fairly standard clause in franchise agreements, as it balances the franchisor's need to maintain brand standards with the franchisee's right to operate their business after fulfilling their contractual obligations.