What happens if the Bombs Away Franchisee fails to disclose Innovations to Bombs Away Franchising?

According to the 2024 Bombs Away Franchise Disclosure Document, franchisees are required to disclose all ideas, plans, improvements, concepts, methods, and techniques related to the business, referred to as "Innovations," that they, their employees, agents, or contractors conceive or develop. Bombs Away will automatically own these Innovations and has the right to incorporate them into the Bombs Away system without compensating the franchisee. The franchisee must also execute any documents reasonably requested by Bombs Away to confirm their ownership of these Innovations. The FDD does not explicitly state the consequences of failing to disclose innovations.

However, the franchise agreement outlines various conditions under which Bombs Away may terminate the agreement, some with a cure period and some without. For instance, Bombs Away can terminate the agreement with a 30-day cure period if the franchisee breaches the agreement in a manner not specifically described elsewhere. There are also instances where Bombs Away can terminate the agreement without a cure period, such as if the franchisee misrepresents or omits material facts when applying to be a franchisee or breaches any representation in the agreement. Furthermore, if the franchisee operates the business in a way that poses a significant danger to health or safety and fails to correct it within 48 hours after becoming aware of the danger, Bombs Away can terminate the agreement.

Given that the FDD does not directly address the repercussions of failing to disclose innovations, it is important for a prospective franchisee to seek clarification from Bombs Away regarding the specific consequences of such a failure. Understanding the potential ramifications, including possible termination of the franchise agreement, is crucial for making an informed decision. A prospective franchisee should inquire about whether failure to disclose innovations would be considered a breach of contract and what steps Bombs Away would take in such a situation.