factual

Can Bombs Away Franchising waive or modify policies regarding referral fees?

Bombs_Away Franchise · 2024 FDD

Answer from 2024 FDD Document

  • (e) Referrals.

Bombs Away Franchising may set policies binding on all franchisees regarding referral fees (and other terms and conditions) when a customer is referred from one Bombs Away business to another.

Bombs Away Franchising may waive or modify such policies in any circumstance as Bombs Away Franchising determines.

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 has the authority to waive or modify policies related to referral fees in any circumstance they deem appropriate. This means that the standard policies regarding referral fees, which apply when a customer is referred from one Bombs Away business to another, are not set in stone and can be adjusted at the discretion of Bombs Away Franchising.

For a prospective franchisee, this clause provides both potential benefits and risks. On one hand, Bombs Away Franchising's ability to modify referral fee policies could be beneficial if a franchisee faces unique circumstances where the standard policy would be unduly burdensome. On the other hand, it also means that Bombs Away Franchising has the power to change the policies in a way that may not be favorable to all franchisees.

This flexibility is not uncommon in franchising, as franchisors often need to adapt policies to different market conditions or specific franchisee situations. However, it's important for a potential Bombs Away franchisee to understand that the referral fee policies outlined in the franchise agreement are subject to change at Bombs Away Franchising's discretion. Therefore, it would be prudent to discuss with Bombs Away Franchising the circumstances under which such waivers or modifications might be granted and to assess the potential impact on their business.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.