What happens if a Bombs Away franchisee ceases operations for more than 15 consecutive days?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
| Provision | Section in franchise or | Summary |
|---|---|---|
| other agreement | ||
| f. Termination by | § 14.2 | We may terminate your franchise |
| franchisor with cause | agreement for cause, subject to any applicable notice and cure opportunity. | |
| g. “Cause” defined-- | Non-payment by you (10 days to cure); | |
| curable defaults | violate franchise agreement other than non- curable default (30 days to cure). | |
| h. “Cause” defined--non- | Misrepresentation when applying to be a | |
| curable defaults | franchisee; knowingly submitting false information; bankruptcy; violation of law; violation of confidentiality; violation of non-compete; violation of transfer restrictions; slander or libel of us; refusal to cooperate with our audit or evaluation; cease operations for more than 15 consecutive days; three defaults in 12 months; cross-termination; conviction of, or plea to, a felony, commit or be accused of an act that is reasonably likely to materially and unfavorably affect our brand; any other breach of franchise agreement which by its nature cannot be cured. | |
| i. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 28–31)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, if a franchisee ceases operations for more than 15 consecutive days, it constitutes a non-curable default, which allows Bombs Away to terminate the franchise agreement. This means Bombs Away does not have to provide an opportunity for the franchisee to correct the issue before terminating the agreement.
This provision is significant for prospective franchisees as it highlights the importance of maintaining continuous operation of the Bombs Away business. Unforeseen circumstances that lead to a prolonged closure, even if unintentional, could result in the termination of the franchise agreement.
It is important to note that this is classified as a non-curable default, meaning the franchisee doesn't have a chance to rectify the situation and prevent termination. Franchisees should carefully consider this when evaluating the risks associated with investing in a Bombs Away franchise and have contingency plans in place to avoid any operational disruptions that could exceed the 15-day limit.