What are the specific obligations of a Bombs Away franchisee regarding the purchase of goods and services, considering the restrictions outlined in Item 8 and the general obligations in Item 9?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
be honest and fair. Franchisee shall comply with any code of ethics or statement of values from Bombs Away Franchising. Franchisee shall not take any action which may injure the goodwill associated with the Marks.
ARTICLE 8. SUPPLIERS AND VENDORS
- 8.1 Generally. Franchisee shall acquire all Inputs required by Bombs Away Franchising from time to time in accordance with System Standards. Bombs Away Franchising may require Franchisee to purchase or lease any Inputs from Bombs Away Franchising, Bombs Away Franchising's designee, Required Vendors, Approved Vendors, and/or under Bombs Away Franchising's specifications. Bombs Away Franchising may change any such requirement or change the status of any vendor. To make such requirement or change effective, Bombs Away Franchising shall issue the appropriate System Standards.
- 8.2 Alternate Vendor Approval. If Bombs Away Franchising requires Franchisee to purchase a particular Input only from an Approved Vendor or Required Vendor, and Franchisee desires to purchase the Input from another vendor, then Franchisee must submit a written request for approval and any information, specifications and/or samples requested by Bombs Away Franchising. Bombs Away Franchising may condition its approval on such criteria as Bombs Away Franchising deems appropriate, which may include evaluations of the vendor's capacity, quality, financial stability, reputation, and reliability; inspections; product testing, and performance reviews. Bombs Away Franchising will provide Franchisee with written notification of the approval or disapproval of any proposed new vendor within 30 days after receipt of Franchisee's request.
- 8.3 Alternate Input Approval. If Bombs Away Franchising requires Franchisee to purchase a particular Input, and Franchisee desires to purchase an alternate to the Input, then Franchisee must submit a written request for approval and any information, specifications and/or samples requested by Bombs Away Franchising. Bombs Away Franchising will provide Franchisee with written notification of the approval or disapproval of any proposed alternate Input within 30 days after receipt of Franchisee's request.
- 8.4 Purchasing. Bombs Away Franchising may negotiate prices and terms with vendors on behalf of the System. Bombs Away Franchising may receive rebates, payments, or other consideration from vendors in connection with purchases by franchisees. Bombs Away Franchising has the right (but not the obligation) to collect payments from Franchisee on behalf of a vendor and remit the payments to the vendor, and to impose a reasonable markup or charge for administering the payment program. Bombs Away Franchising may implement a centralized purchasing system. Bombs Away Franchising may establish a purchasing cooperative and require Franchisee to join and participate in the purchasing cooperative on such terms and conditions as Bombs Away Franchising may determine.
- 8.5 No Liability of Franchisor. Bombs Away Franchising shall not have any liability to Franchisee for any claim or loss related to any product provided or service performed by any Approved Vendor or Required Vendor, including without limitation defects, delays, or unavailability of products or services.
- 8.6 Product Recalls. If Bombs Away Franchising or any vendor, supplier, or manufacturer of an item used or sold in Franchisee's Business issues a recall of such item or otherwise notifies Franchisee that such item is defective or dangerous, Franchisee shall immediately cease using or selling such item, and Franchisee shall at its own expense comply with all instructions from Bombs Away Franchising or the vendor, supplier, or manufacturer of such item with respect to such item, including without limitation the recall, repair, and/or replacement of such item.
ARTICLE 9. MARKETING
- 9.1 Approval and Implementation. Franchisee shall not conduct any marketing, advertising or public relations activities (including websites, online advertising, social media marketing or presence, and sponsorships) that have not been approved by Bombs Away Franchising. Bombs Away Franchising may (but is not obligated to) operate all "social media" accounts on behalf of the System, or it may permit franchisees to operate one or more accounts.
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, franchisees have specific obligations regarding the purchase of goods and services. Bombs Away has the authority to mandate that franchisees acquire all necessary inputs according to the System Standards, potentially requiring purchases or leases from Bombs Away itself, its designees, Required Vendors, or Approved Vendors based on Bombs Away's specifications. These requirements and vendor statuses can be changed by Bombs Away, with changes communicated through System Standards.
If a franchisee wishes to use an alternate vendor when Bombs Away requires purchase from an Approved or Required Vendor, they must submit a written request for approval. Bombs Away may impose conditions on this approval, assessing the vendor's capacity, quality, financial stability, reputation, and reliability through inspections, product testing, and performance reviews. Bombs Away will provide a written notification of approval or disapproval within 30 days of the request. Similarly, if a franchisee wants to use an alternate input, they must submit a written request, and Bombs Away will respond within 30 days.
Bombs Away may negotiate prices and terms with vendors on behalf of the entire system and may receive rebates, payments, or other considerations from vendors based on franchisee purchases. Bombs Away has the right to collect payments from franchisees on behalf of vendors, remit these payments, and impose a reasonable charge for administering this payment program. Bombs Away also has the option to implement a centralized purchasing system or establish a purchasing cooperative that franchisees may be required to join and participate in under terms set by Bombs Away. Franchisees are obligated to offer only the products and services prescribed by Bombs Away in the Manual or in writing and must provide these in a high-quality manner that meets or exceeds customer expectations and System Standards.
Bombs Away is not liable for any claims or losses related to products or services provided by Approved or Required Vendors, including defects, delays, or unavailability. In the event of a product recall, franchisees must immediately stop using or selling the item and comply with all instructions from Bombs Away or the vendor regarding the recall, repair, or replacement of the item at the franchisee's expense.