If a Bombs Away franchisee renews their agreement, can the territory be changed?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
- (i) Franchisee notifies Bombs Away Franchising of the election to renew between 90 and 180 days prior to the end of the term;
- (ii) Franchisee (and its affiliates) are in compliance with this Agreement and all other agreements with Bombs Away Franchising (or any of its affiliates) at the time of election and at the time of renewal;
- (iii) Franchisee has made or agrees to make (within a period of time acceptable to Bombs Away Franchising) changes to the Business as Bombs Away Franchising requires to conform to the then-current System Standards;
- (iv) Franchisee and its Owners execute Bombs Away Franchising's then-current standard form of franchise agreement and related documents (including personal guaranty), which may be materially different than this form (including, without limitation, higher and/or different fees), except that (A) Franchisee will not pay another initial franchise fee, (B) Franchisee will not receive more renewal or successor terms than described in this Section, and (C) the Territory will not be changed;
- (v) Franchisee and each Owner executes a general release (on Bombs Away Franchising's then-standard form) of any and all claims against Bombs Away Franchising, its affiliates, and their respective owners, officers, directors, agents and employees.
Source: Item 22 — CONTRACTS (FDD pages 35–36)
What This Means (2024 FDD)
According to the 2024 Bombs Away Franchise Disclosure Document, the territory will not be changed if a franchisee renews their agreement. To renew the franchise agreement, a franchisee must notify Bombs Away between 90 and 180 days before the end of the current term. The franchisee must also be in compliance with the existing agreement and any other agreements with Bombs Away at the time of election and renewal.
Additionally, the franchisee must make any changes to the business that Bombs Away requires to meet the current System Standards. The franchisee and its owners must execute Bombs Away's current standard franchise agreement and related documents, including a personal guaranty, which may differ materially from the original agreement, potentially including higher or different fees.
However, the FDD explicitly states that the franchisee will not pay another initial franchise fee and the territory will not be changed upon renewal. Furthermore, the franchisee and each owner must execute a general release of any and all claims against Bombs Away, its affiliates, and their respective owners, officers, directors, agents, and employees.