factual

What rights does Bombs Away Franchising have regarding Innovations conceived or developed by the Franchisee?

Bombs_Away Franchise · 2024 FDD

Answer from 2024 FDD Document

  • 11.6 Innovations. Franchisee shall disclose to Bombs Away Franchising all ideas, plans, improvements, concepts, methods and techniques relating to the Business (collectively, "Innovations") conceived or developed by Franchisee, its employees, agents or contractors. Bombs Away Franchising will automatically own all Innovations and it will have the right to use and incorporate any Innovations into the System, without any compensation to Franchisee. Franchisee shall execute any documents reasonably requested by Bombs Away Franchising to document Bombs Away Franchising's ownership of Innovations.

Source: Item 22 — CONTRACTS (FDD pages 35–36)

What This Means (2024 FDD)

According to Bombs Away's 2024 Franchise Disclosure Document, Bombs Away Franchising has specific rights regarding any innovations a franchisee develops related to the Bombs Away business. Bombs Away requires franchisees to disclose all ideas, plans, improvements, concepts, methods, and techniques related to the business, which are collectively termed "Innovations," conceived or developed by the franchisee, its employees, agents, or contractors.

Bombs Away Franchising automatically owns all Innovations. This means that any new ideas or improvements a franchisee comes up with immediately become the property of Bombs Away Franchising. Bombs Away Franchising has the right to use and incorporate any Innovations into the Bombs Away system without providing any compensation to the franchisee.

Furthermore, Bombs Away requires franchisees to execute any documents reasonably requested by Bombs Away Franchising to formally document Bombs Away Franchising's ownership of these Innovations. This ensures that Bombs Away Franchising has the legal documentation necessary to protect its ownership of the Innovations. This is a fairly standard clause in franchise agreements, as franchisors want to maintain control over their brand and system standards.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.