What obligations does a Bombs Away franchisee have regarding phone, internet, and other providers upon termination or non-renewal?
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. Franchisee’s obligations | Pay all amounts due; return Manual and | |
| on termination/non- | ||
| renewal | proprietary items; notify phone, internet, and other providers and transfer service; cease doing business; remove identification; purchase option by us. |
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, upon termination or non-renewal of the franchise agreement, a franchisee has specific obligations regarding service providers. The franchisee must notify phone, internet, and other providers and transfer service. This means the franchisee is responsible for informing these providers of the termination or non-renewal and arranging for the transfer of services, presumably to Bombs Away or another designated party.
This requirement ensures a smooth transition of services and prevents any disruption to Bombs Away's operations or brand image. It is a standard practice in franchising to ensure that essential services continue without interruption, whether the location is taken over by the franchisor, another franchisee, or ceases operation.
In practical terms, the franchisee will need to identify all service contracts related to the Bombs Away business, contact each provider, and follow their procedures for transferring or terminating the services. This may involve paperwork, fees, or other administrative tasks. Failure to properly handle these transfers could result in continued billing or other liabilities for the franchisee even after termination.