Does having a claim against Bombs Away Franchising excuse a franchisee from complying with the non-compete agreement?

According to Bombs Away's 2024 Franchise Disclosure Document, the existence of a claim against Bombs Away Franchising does not excuse a franchisee from complying with the non-compete agreement. The franchise agreement specifies that each covenant within it, including the non-compete obligations, is independent of any other provision. This means that a franchisee cannot use a claim against Bombs Away as a defense against the enforcement of the non-compete clause.

This provision is significant for prospective franchisees as it clarifies that they must continue to adhere to the non-compete agreement even if they have a dispute with Bombs Away. Failure to comply with the non-compete terms can lead to legal action by Bombs Away, regardless of any claims the franchisee may have against them. The agreement also states that if a franchisee fails to comply with the non-compete obligations, the restrictive period will be extended by one day for each day of noncompliance, potentially prolonging the duration of the non-compete restrictions.

This type of clause is relatively common in franchise agreements, as franchisors seek to protect their business interests and confidential information. Franchisees should be aware of this provision and understand that they cannot avoid their non-compete obligations simply by claiming a grievance against Bombs Away. It is advisable for franchisees to seek legal counsel to fully understand the implications of the non-compete agreement and the potential consequences of non-compliance, especially if they anticipate any disputes with Bombs Away during or after the franchise term.