What is the notification timeframe required for a Bombs Away franchisee to elect to renew their agreement?
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 Bombs Away's 2024 Franchise Disclosure Document, a franchisee must notify Bombs Away Franchising of their election to renew their franchise agreement between 90 and 180 days prior to the end of the current term. This notification period is crucial for franchisees who wish to continue operating their Bombs Away franchise beyond the initial term.
In addition to providing timely notice, the franchisee must also be in full compliance with the existing franchise agreement and all other agreements with Bombs Away or its affiliates, both at the time of election and at the time of renewal. The franchisee may also be required to make changes to the business to conform to Bombs Away's then-current System Standards.
Furthermore, the franchisee and each owner must execute Bombs Away's then-current standard form of 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 franchisee will not pay another initial franchise fee, receive more renewal or successor terms than described in the agreement, and the territory will not be changed. Finally, 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.