What happens if a levy or execution is made against the Bombs Away franchisee's business?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
- (c) Without Cure Period. Bombs Away Franchising may terminate this Agreement by giving notice to Franchisee, without opportunity to cure, if any of the following occur:
- (iii) a receiver or trustee for the Business or all or substantially all of Franchisee's property is appointed by any court, or Franchisee makes a general assignment for the benefit of Franchisee's creditors, or Franchisee is unable to pay its debts as they become due, or a levy or execution is made against the Business, or an attachment or lien remains on the Business for 30 days unless the attachment or lien is being duly contested in good faith by Franchisee, or a petition in bankruptcy is filed by Franchisee, or such a petition is filed against or consented to by Franchisee and the petition is not dismissed within 45 days, or Franchisee is adjudicated as bankrupt;
Source: Item 22 — CONTRACTS (FDD pages 35–36)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, if a levy or execution is made against the franchisee's business, Bombs Away Franchising has the right to terminate the franchise agreement without providing an opportunity for the franchisee to cure the issue. This means Bombs Away can immediately end the agreement if such an event occurs.
This provision protects Bombs Away from potential financial and reputational damage that could arise if a franchisee's business faces significant financial distress or legal action. It allows Bombs Away to quickly disassociate itself from a struggling or non-compliant franchisee.
For a prospective Bombs Away franchisee, this clause highlights the importance of maintaining sound financial management and adhering to all legal and contractual obligations. Failure to do so could result in the immediate termination of the franchise agreement and loss of the business. Franchisees should ensure they have adequate financial resources and business practices in place to avoid such situations.