What is the recommendation regarding on-premises supervision for a Bombs Away franchise?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
- 2.3 Franchisee Control. Franchisee represents that it will identify each owner, officer and director of Franchisee, and describes the nature and extent of each owner's interest in Franchisee.
If any of this information changes, Franchisee shall notify Franchisor within 10 days.
- 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 15 — Obligation to Participate in the Actual Operation of the Franchise Business (FDD pages 26–27)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, the franchisee must designate a "Principal Executive" who is primarily responsible for the business. This Principal Executive needs to have at least a 10% ownership stake in the franchise. Furthermore, this individual is required to actively participate in the direct operation of the Bombs Away business and dedicate a significant amount of their time and attention to it.
This requirement ensures that someone with a vested interest and decision-making authority is consistently involved in the day-to-day management of the Bombs Away franchise. This hands-on approach is likely intended to maintain quality control, customer satisfaction, and adherence to Bombs Away's standards.
If the initially designated Principal Executive leaves their position due to death, incapacitation, transfer of interest, or any other reason, the franchisee is obligated to promptly appoint a new Principal Executive. This replacement is subject to Bombs Away's approval, ensuring that the new executive meets the franchisor's standards for leadership and commitment.