What happens if a Bombs Away franchisee (or its affiliates) is not in compliance with all agreements with Bombs Away Franchising at the time of election and renewal?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
- (i) Franchisee notifies Bombs Away Franchising of the election to renew between 90 and 180 days prior to the end of the term;
- (ii) Franchisee (and its affiliates) are in compliance with this Agreement and all other agreements with Bombs Away Franchising (or any of its affiliates) at the time of election and at the time of renewal;
- (iii) Franchisee has made or agrees to make (within a period of time acceptable to Bombs Away Franchising) changes to the Business as Bombs Away Franchising requires to conform to the then-current System Standards;
- (iv) Franchisee and its Owners execute Bombs Away Franchising's then-current standard form of franchise agreement and related documents (including personal guaranty), which may be materially different than this form (including, without limitation, higher and/or different fees), except that (A) Franchisee will not pay another initial franchise fee, (B) Franchisee will not receive more renewal or successor terms than described in this Section, and (C) the Territory will not be changed;
- (v) Franchisee and each Owner executes a general release (on Bombs Away Franchising's then-standard form) of any and all claims against Bombs Away Franchising, its affiliates, and their respective owners, officers, directors, agents and employees.
Source: Item 22 — CONTRACTS (FDD pages 35–36)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, a franchisee's compliance with all agreements is a condition for renewal. Specifically, to renew their franchise agreement, Bombs Away requires that the franchisee (and its affiliates) are in compliance with the existing Franchise Agreement and all other agreements with Bombs Away (or any of its affiliates) both when they elect to renew and at the time of the actual renewal.
This requirement means that if a Bombs Away franchisee, or any of their affiliated businesses, is in breach of any agreement with Bombs Away at either of these critical junctures, they will likely be ineligible for renewal. This could include failure to meet operational standards, outstanding payments, or any other violation of the franchise agreement or related contracts.
For a prospective Bombs Away franchisee, this underscores the importance of maintaining strict compliance with all contractual obligations. Failure to do so not only risks potential termination during the initial term but also jeopardizes the opportunity to extend the franchise and continue operating under the Bombs Away brand. Franchisees should ensure they understand and adhere to all terms and conditions to safeguard their investment and future business operations.