What is Bombs Away's policy regarding reporting lawsuits or known plans of litigation?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
The Company may be subject to pending legal proceedings and regulatory actions in the ordinary course of business. The results of such proceedings cannot be predicted with certainty, but the Company does not anticipate that the final outcome, if any, arising out of any such matter will have a material adverse effect on its business, financial condition or results of operations. As of December 31, 2022, the Company has not reported any lawsuit or known plans of litigation by or against the Company.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 35)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, the company addresses potential legal proceedings and regulatory actions within its financial statements. Bombs Away states that it may be subject to such actions in the ordinary course of business. While the outcomes of these proceedings cannot be predicted with certainty, Bombs Away does not anticipate that any final outcomes will have a materially adverse effect on its business, financial condition, or results of operations.
As of December 31, 2022, Bombs Away reported that there were no lawsuits or known plans of litigation by or against the company. This statement provides a snapshot in time and indicates that, at least as of that date, Bombs Away was not involved in any reported legal disputes or anticipating any imminent litigation.
This information is typically included in the financial statements to provide transparency to potential investors and franchisees about the company's financial health and potential risks. Franchisees should note that this is only a disclosure of the company's position at a specific point in time and that legal situations can change. It is advisable to review the FDD carefully and consult with legal and financial advisors to assess the potential risks associated with any franchise investment.