How much advance notice must a Bombs Away franchisee give to renew the 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; |
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, to renew the franchise agreement, a franchisee must give advance notice to Bombs Away. The FDD does not specify the exact amount of advance notice a Bombs Away franchisee must provide to renew the franchise agreement.
In addition to providing advance notice, the franchisee must be in compliance with all contractual obligations to Bombs Away and third parties. The franchisee must also conform their business to then-current standards for new franchisees, sign the then-current form of franchise agreement and related documents (including personal guaranty), and sign a general release (unless prohibited by applicable law).
It is important to note that the new franchise agreement may contain materially different terms and conditions than the original contract. If a franchisee continues operating the Bombs Away franchise after the expiration of the term without a renewal agreement, Bombs Away may either terminate the operation at any time or deem the franchisee to have renewed the agreement for an additional term.
Prospective Bombs Away franchisees should clarify the required advance notice period with the franchisor to ensure they meet all renewal requirements and avoid any disruption in their business operations.