What are the requirements for a Bombs Away franchisee to renew or extend their franchise term?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
e agreements attached to this disclosure document.**
| Provision | Section in franchise or | Summary |
|---|---|---|
| other agreement | ||
| a. Length of the franchise | § 3.1 | 10 years from date of franchise agreement. |
| term | ||
| b. Renewal or extension of | For our franchise system, “renewal” means | |
| the term | that at the end of your term, you sign our successor franchise agreement for an additional term. You must sign our then current franchise agreement, which may contain materially different terms and conditions than your original contract. | |
| c. Requirements for | To renew, you must give advance notice to | |
| franchisee to renew or | ||
| extend | us; be in compliance with all contractual obligations to us and third parties; conform your business to then-current standards for new franchisees; sign then-current form of franchise agreement and related documents (including personal guaranty); sign general release (unless prohibited by applicable law). If you continue operating your franchise after the expiration of the term without a renewal agreement, then we may either terminate your operation at any time or deem you to have renewed your agreement for an additional term. | |
| d. |
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, the franchise agreement has an initial term of 10 years. To renew the franchise, Bombs Away requires franchisees to sign the then-current franchise agreement, which may include materially different terms and conditions than the original agreement. This is a fairly standard practice in franchising, as franchise systems evolve over time.
Specific requirements for renewal include providing advance notice to Bombs Away, being in compliance with all contractual obligations to Bombs Away and third parties, and conforming the business to the then-current standards for new franchisees. Additionally, franchisees must sign the then-current form of the franchise agreement and related documents, including a personal guaranty, and sign a general release (unless prohibited by applicable law).
It is important to note that if a Bombs Away franchisee continues to operate the franchise after the expiration of the term without a renewal agreement, Bombs Away has the option to either terminate the operation at any time or deem the agreement to have been renewed for an additional term. This clause protects Bombs Away's interests and ensures that franchisees do not continue to operate under an expired agreement without formal renewal.