What is the length of the initial franchise term for a Bombs Away franchise?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
e agreements attached to this disclosure document.**
| Provision | Section in franchise or | Summary |
|---|---|---|
| other agreement | ||
| a. Length of the franchise | § 3.1 | 10 years from date of franchise agreement. |
| term | ||
| b. Renewal or extension of | For our franchise system, “renewal” means | |
| the term | that at the end of your term, you sign our successor franchise agreement for an additional term. You must sign our then current franchise agreement, which may contain materially different terms and conditions than your original contract. | |
| c. Requirements for | To renew, you must give advance notice to | |
| franchisee to renew or | ||
| extend | us; be in compliance with all contractual obligations to us and third parties; conform your business to then-current standards for new franchisees; sign then-current form of franchise agreement and related documents (including personal guaranty); sign general release (unless prohibited by applicable law). If you continue operating your franchise after the expiration of the term without a renewal agreement, then we may either terminate your operation at any time or deem you to have renewed your agreement for an additional term. | |
| d. |
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, the initial franchise term is 10 years, starting from the date of the franchise agreement. This means a franchisee will operate under the Bombs Away franchise system for a decade before needing to consider renewal.
At the end of the initial term, Bombs Away offers an opportunity for renewal, but it requires signing the then-current franchise agreement. This new agreement may contain terms and conditions that are significantly different from the original contract. This is a common practice in franchising, allowing franchisors to update their agreements to reflect changes in the market, legal requirements, or the Bombs Away business model.
To renew the franchise, a franchisee must provide advance notice, be in full compliance with all contractual obligations to Bombs Away and any third parties, and ensure the business conforms to the standards for new franchisees at that time. Additionally, the franchisee must sign the current franchise agreement and related documents, including a personal guaranty, and execute a general release, unless prohibited by law. Failing to renew and continuing operations could lead to termination or be interpreted by Bombs Away as a renewal for an additional term.