Does Bombs Away Franchising's action to discontinue supplies relieve the franchisee of their obligations?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
No such action by Bombs Away Franchising shall be a breach or constructive termination of this Agreement, change in competitive circumstances or similarly characterized, and Franchisee shall not be relieved of any obligations under this
Agreement because of any such action.
Source: Item 22 — CONTRACTS (FDD pages 35–36)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, if a franchisee is in default or breach of the Franchise Agreement, Bombs Away Franchising has the right to discontinue supplying products or services. However, this action does not relieve the franchisee of their obligations under the agreement.
Specifically, Bombs Away Franchising may require the franchisee to pay cash on delivery for products or services, stop selling or providing any products and services, and/or request third-party vendors to not sell or provide products or services to the franchisee.
This provision clarifies that Bombs Away's decision to discontinue supplies due to a franchisee's default does not constitute a breach or constructive termination of the agreement. The franchisee remains responsible for fulfilling all obligations outlined in the Franchise Agreement, even if Bombs Away restricts supplies. This is a standard clause in franchise agreements to protect the franchisor's interests when a franchisee is not in compliance.