What are the specific obligations of a Bombs Away franchisee regarding the compliance with health and safety regulations, considering the general obligations in Item 9 and the potential liabilities associated with non-compliance?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
- 7.12 Maintenance and Repair. If the Location will be open to the public or used for meeting customers or potential customers, then Franchisee shall at all times keep the Business in a neat and clean condition, perform all appropriate maintenance, and keep all physical property in good repair.
In addition, Franchisee shall promptly perform all work on the physical property of the Business as Bombs Away Franchising may prescribe from time to time.
(i) Commercial General Liability insurance, including products liability coverage, and broad form commercial liability coverage, written on an "occurrence" policy form in an amount of not less than $1,000,000 single limit per occurrence and $2,000,000 aggregate limit;
(ix) the Business is operated in a manner which, in Bombs Away Franchising's reasonable judgment, constitutes a significant danger to the health or safety of any person, and Franchisee fails to cure such danger within 48 hours after becoming aware of the danger (due to notice from Bombs Away Franchising or otherwise);
11.2 Business Evaluation. Bombs Away Franchising may accompany Franchisee or its personnel on any services performed for a customer to conduct an evaluation.
If the Location will be open to the public or used for meeting customers or potential customers, Bombs Away Franchising may enter the premises of the Business from time to time during normal business hours and conduct an evaluation.
Franchisee shall cooperate with Bombs Away Franchising's evaluators.
The evaluation may include, but is not limited to, observing operations, conducting a physical inventory, evaluating physical conditions, monitoring sales activity, speaking with employees and customers, and removing samples of products, supplies and materials.
Bombs Away Franchising may videotape and/or take photographs of the evaluation.
Bombs Away Franchising may set a minimum score requirement for evaluations, and Franchisee's failure to meet or exceed the minimum score will be a default under this Agreement.
Without limiting Bombs Away Franchising's other rights under this Agreement, Franchisee will, as soon as reasonably practical, correct any deficiencies noted during an evaluation.
If Bombs Away Franchising conducts an evaluation because of a governmental report, customer complaint or other customer feedback, or a default or non-compliance with any System Standard by Franchisee (including following up a previous failed evaluation), then Bombs Away Franchising may charge all out-ofpocket expenses plus its then-current evaluation fee to Franchisee.
- 11.3 Bombs Away Franchising's Right to Cure. If Franchisee breaches or defaults under any provision of this Agreement, Bombs Away Franchising may (but has no obligation to) take any action to cure the default on behalf of Franchisee, without any liability to Franchisee.
Franchisee shall reimburse Bombs Away Franchising for its costs and expenses (including the allocation of any internal costs) for such action, plus 10% as an administrative fee.
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)
According to Bombs Away's 2024 Franchise Disclosure Document, franchisees must adhere to several health and safety-related obligations. Bombs Away retains the right to evaluate the business and its compliance with system standards, and may set minimum score requirements for evaluations. Failure to meet these minimum scores constitutes a default under the Franchise Agreement. Franchisees are responsible for correcting any deficiencies noted during an evaluation. If an evaluation is triggered by a governmental report or customer complaint, Bombs Away may charge the franchisee for all out-of-pocket expenses plus an evaluation fee.
Bombs Away franchisees must maintain a clean and well-maintained business location, performing all appropriate maintenance and keeping the physical property in good repair. If the business is operated in a manner that poses a significant danger to the health or safety of any person, and the franchisee fails to address the danger within 48 hours after becoming aware of it, this constitutes a breach of the Franchise Agreement. Bombs Away also requires franchisees to maintain specific insurance coverage, including Commercial General Liability insurance of not less than $1,000,000 single limit per occurrence and $2,000,000 aggregate limit.
Failure to comply with these health and safety regulations, or failure to maintain the required insurance, can lead to termination of the Franchise Agreement. Bombs Away has the right, but not the obligation, to cure any default on behalf of the franchisee, with the franchisee responsible for reimbursing all costs and expenses incurred by Bombs Away, plus a 10% administrative fee. Bombs Away may also take action to resolve customer complaints and require the franchisee to reimburse any expenses incurred. These stipulations highlight the importance of adhering to Bombs Away's standards and all applicable health and safety laws to avoid potential liabilities and maintain a successful franchise operation.