Is Bombs Away required to purchase the franchise if the franchisee terminates or does not renew?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
| Provision | Section in franchise or | Summary |
|---|---|---|
| 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, Bombs Away has a purchase option upon termination or non-renewal of the franchise agreement. As a franchisee, upon termination or non-renewal, you are obligated to pay all outstanding amounts, return the operations manual and any other proprietary items, transfer service and notify phone and internet providers, cease business operations, and remove any identification indicating affiliation with Bombs Away.
This purchase option means that Bombs Away has the right, but not the obligation, to buy your franchise business if you decide to terminate the agreement or if the agreement expires and is not renewed. The specific terms and conditions of this purchase option, such as the valuation method and payment terms, are not detailed in this section.
Prospective franchisees should carefully review the franchise agreement to understand the circumstances under which Bombs Away might exercise its purchase option and the financial implications for the franchisee. It is important to clarify how the business will be valued and what factors will be considered in determining the purchase price. Understanding these terms is crucial for making an informed decision about investing in a Bombs Away franchise.