What are the specific obligations of a Bombs Away franchisee regarding the compliance with consumer protection laws, considering the general obligations in Item 9 and the potential liabilities associated with non-compliance?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee shall comply with all procedures and specifications of Bombs Away Franchising related to gift cards, certificates, and other pre-paid systems, or related to customer loyalty, membership/subscription, or customer incentive programs.
Franchisee shall participate at its own expense in programs required from time to time by Bombs Away Franchising for obtaining customer evaluations, reviewing Franchisee's compliance with the System, and/or managing customer complaints, which may include (but are not limited to) a customer feedback system, customer survey programs, and mystery shopping.
Bombs Away Franchising shall share with Franchisee the results of these programs, as they pertain to the Business.
Franchisee must meet or exceed any minimum score requirements set by Bombs Away Franchising for such programs.
Bombs Away Franchising may set minimum scores that Franchisee must receive from the public on internet review sites (such as Yelp or Google).
Franchisee shall accept payment from customers in any form or manner designated by Bombs Away Franchising (which may include, for example, cash, specific credit and/or debit cards, gift cards, electronic fund transfer systems, and mobile payment systems).
Franchisee must at all times comply with payment card industry data security standards (PCI-DSS).
- (v) Franchisee or any Owner commits a material violation of Section 7.2 (compliance with laws) or Section 13.1 (confidentiality), violates Section 13.2 (non-compete) or Article 15 (transfer), or commits any other violation of this Agreement which by its nature cannot be cured;
Bombs Away Franchising may take any action it deems appropriate to resolve a customer complaint regarding the Business, and Bombs Away Franchising may require Franchisee to reimburse Bombs Away Franchising for any expenses.
What This Means (2024 FDD)
Based on the 2024 Franchise Disclosure Document, Bombs Away franchisees have several obligations related to consumer interactions and legal compliance. Franchisees must adhere to Bombs Away Franchising's procedures for gift cards, loyalty programs, and other incentive programs. This includes selling gift cards and participating in customer loyalty programs as designated by Bombs Away. Franchisees are also required to honor all valid gift cards, regardless of which Bombs Away business issued them.
Bombs Away franchisees must participate in programs for customer evaluations and compliance reviews, potentially including customer feedback systems, surveys, and mystery shopping, at their own expense. Bombs Away will share the results of these programs with the franchisee. Franchisees must also meet or exceed minimum score requirements set by Bombs Away for these programs and on internet review sites like Yelp or Google. Franchisees are required to accept payment from customers in any form designated by Bombs Away, including cash, credit/debit cards, gift cards, and mobile payment systems, and must comply with payment card industry data security standards (PCI-DSS).
Failure to comply with these requirements can lead to termination of the franchise agreement. Specifically, if a franchisee violates Section 7.2, which covers compliance with laws, it constitutes a material violation that cannot be cured, leading to immediate termination. Bombs Away also retains the right to take action to resolve customer complaints and may require the franchisee to reimburse any expenses incurred. These measures ensure that Bombs Away maintains consistent standards and protects its brand reputation, while franchisees must remain vigilant in adhering to all legal and procedural requirements to avoid penalties.