If my Bombs Away franchise is terminated or not renewed, what obligations do I have?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
| Provision | Section in franchise or | Summary |
|---|---|---|
| i. Franchisee’s obligations | Pay all amounts due; return Manual and | |
| on termination/non- | ||
| renewal | proprietary items; notify phone, internet, and other providers and transfer service; cease doing business; remove identification; purchase option by us. | |
| r. Non-competition | For two years, neither you, any owner of | |
| covenants after the | ||
| franchise is terminated or | ||
| expires | the business, or any spouse of an owner may have ownership interest in, lend money or provide financial assistance to, provide services to, or be employed by a competitor operating in your former territory or the territory of any other Bombs Away business operating on the date of termination. |
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 your franchise is terminated or not renewed, you have specific obligations to fulfill. These include paying all outstanding amounts owed to Bombs Away, returning the operations manual and any other proprietary items, and notifying and transferring service from phone, internet, and other providers. You must also cease operating the Bombs Away business and remove all branding and identification.
Additionally, Bombs Away has the option to purchase your franchise. Furthermore, for a period of two years after termination or expiration, you, any owner of the business, or any spouse of an owner are restricted from having any ownership interest in, lending money or providing financial assistance to, providing services to, or being employed by a competitor. This non-compete clause applies within your former territory or the territory of any other Bombs Away business operating on the date of termination.
These obligations are fairly standard in the franchise industry, designed to protect the Bombs Away brand and prevent unfair competition. It is important for prospective franchisees to carefully review these post-termination obligations to understand the full scope of their responsibilities and restrictions should the franchise agreement end.