Does Bombs Away Franchising's action to discontinue supplies constitute a breach of the agreement?

According to Bombs Away's 2024 Franchise Disclosure Document, Bombs Away Franchising has the right to discontinue supplying products or services to a franchisee under certain conditions without it being considered a breach of the agreement. Specifically, if a franchisee is in default or breach of the Franchise Agreement, Bombs Away Franchising has the option to require cash on delivery for products/services, stop selling/providing products/services, and/or request third-party vendors to not sell/provide products/services to the franchisee.

This provision protects Bombs Away Franchising by allowing them to mitigate potential losses or damages resulting from a franchisee's non-compliance with the agreement. It also ensures that Bombs Away can maintain the integrity of its brand and system standards. The FDD clearly states that such actions by Bombs Away Franchising will not be considered a breach or constructive termination of the agreement, nor will it relieve the franchisee of their obligations.

For a prospective Bombs Away franchisee, this means that strict adherence to the Franchise Agreement is crucial. Failure to comply with the agreement's terms can lead to Bombs Away withholding essential supplies and services, which could severely impact the franchisee's ability to operate the business. This clause underscores the importance of understanding and fulfilling all obligations outlined in the Franchise Agreement to maintain a healthy business relationship with Bombs Away Franchising and avoid potential disruptions to the supply chain.

It is important to note that Bombs Away Franchising's rights are in addition to any other right or remedy available to them, meaning they can pursue other legal or contractual options alongside discontinuing supplies. This highlights the significant power Bombs Away retains to enforce the Franchise Agreement and protect its interests.