If a Bombs Away franchisee or owner is charged with a felony, can Bombs Away Franchising terminate the agreement?

According to Bombs Away's 2024 Franchise Disclosure Document, Bombs Away Franchising has the right to terminate the franchise agreement if a franchisee or any owner is charged with, pleads guilty or no-contest to, or is convicted of a felony. This provision grants Bombs Away significant authority to protect its brand and reputation.

This clause means that even being charged with a felony, regardless of the outcome of a trial, can be grounds for termination. This is a notable risk for prospective franchisees, as legal proceedings can be lengthy and costly, and Bombs Away can terminate the agreement even before a conviction. The FDD does not specify any particular type of felony that would trigger termination, implying that any felony charge could be sufficient.

It is important for a potential Bombs Away franchisee to understand the full scope of this termination clause and how it could impact their investment. Franchisees should seek legal counsel to fully understand the implications of this clause and to assess their own risk tolerance. Franchisees may also want to inquire with Bombs Away about what specific types of felonies would trigger this clause and under what circumstances Bombs Away would choose to exercise its right to terminate the agreement.