What ownership interest must the Principal Executive have in the Bombs Away franchise?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
- 2.4 Principal Executive. Franchisee agrees that the person designated as the "Principal Executive" on the Summary Page is the executive primarily responsible for the Business and has decision-making authority on behalf of Franchisee.
The Principal Executive must have at least 10% ownership interest in Franchisee.
The Principal Executive must participate in the direct operation of the Business and must devote substantial time and attention to the Business.
If the Principal Executive dies, becomes incapacitated, transfers his/her interest in Franchisee, or otherwise ceases to be the executive primarily responsible for the Business, Franchisee shall promptly designate a new Principal Executive, subject to Bombs Away Franchising's reasonable approval.
Source: Item 22 — CONTRACTS (FDD pages 35–36)
What This Means (2024 FDD)
According to the 2024 Bombs Away Franchise Disclosure Document, the Principal Executive of a Bombs Away franchise must maintain a minimum ownership interest in the franchise. Specifically, the Principal Executive is required to have at least 10% ownership interest in the Bombs Away franchise.
This requirement ensures that the individual primarily responsible for managing the Bombs Away business has a vested interest in its success. By mandating a minimum ownership stake, Bombs Away aims to align the Principal Executive's goals with those of the franchise, encouraging dedicated management and operational oversight.
Furthermore, the Principal Executive must actively participate in the direct operation of the Bombs Away business and devote substantial time and attention to it. If the Principal Executive dies, becomes incapacitated, transfers their interest, or otherwise ceases to be the executive primarily responsible, the franchisee must promptly designate a new Principal Executive, subject to Bombs Away's approval.