What are some non-curable defaults that could lead to termination of a Bombs Away franchise?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
| Provision | Section in franchise or | Summary |
|---|---|---|
| other agreement | ||
| f. Termination by | § 14.2 | We may terminate your franchise |
| franchisor with cause | agreement for cause, subject to any applicable notice and cure opportunity. | |
| g. “Cause” defined-- | Non-payment by you (10 days to cure); | |
| curable defaults | violate franchise agreement other than non- curable default (30 days to cure). | |
| h. “Cause” defined--non- | Misrepresentation when applying to be a | |
| curable defaults | franchisee; knowingly submitting false information; bankruptcy; violation of law; violation of confidentiality; violation of non-compete; violation of transfer restrictions; slander or libel of us; refusal to cooperate with our audit or evaluation; cease operations for more than 15 consecutive days; three defaults in 12 months; cross-termination; conviction of, or plea to, a felony, commit or be accused of an act that is reasonably likely to materially and unfavorably affect our brand; any other breach of franchise agreement which by its nature cannot be cured. | |
| i. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 28–31)
What This Means (2024 FDD)
According to the 2024 Bombs Away Franchise Disclosure Document, there are specific defaults that the franchisor considers non-curable, meaning that if these occur, Bombs Away can terminate the franchise agreement without providing an opportunity for the franchisee to correct the issue.
Some of these non-curable defaults include misrepresentation when applying to become a franchisee or knowingly submitting false information during the application process. Filing for bankruptcy, violating any law, breaching confidentiality obligations, violating non-compete agreements, or violating transfer restrictions also constitute non-curable defaults.
Additionally, if a Bombs Away franchisee engages in slander or libel against the franchisor, refuses to cooperate with an audit or evaluation by Bombs Away, ceases operations for more than 15 consecutive days, or accumulates three defaults within a 12-month period, the franchise agreement can be terminated immediately. Committing or being accused of an act that could negatively impact the Bombs Away brand, being convicted of or pleading to a felony, or any other breach of the franchise agreement that cannot be rectified are also considered non-curable defaults leading to termination.