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What are the specific obligations of a Bombs Away franchisee regarding suppliers, considering the restrictions outlined in Item 8 and the general obligations in Item 9?

Bombs_Away Franchise · 2024 FDD

Answer from 2024 FDD Document

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. Franchisee must comply with any System Standards regarding marketing, advertising, and public relations, include any social media policy that Bombs Away Franchising may prescribe. Franchisee shall implement any marketing plans or campaigns determined by Bombs Away Franchising.
  • 9.2 Use By Bombs Away Franchising. Bombs Away Franchising may use any marketing materials or campaigns developed by or on behalf of Franchisee, and Franchisee hereby grants an unlimited, perpetual, royalty-free license to Bombs Away Franchising for such purpose.
  • 9.3 Marketing Fund. Bombs Away Franchising may establish a Marketing Fund to promote the System on a local, regional, national, and/or international level. If Bombs Away Franchising has established a Marketing Fund:
  • (a) Separate Account. Bombs Away Franchising shall hold the Marketing Fund Contributions from all franchisees in one or more bank accounts separate from Bombs Away Franchising's other accounts.
  • (b) Use. Bombs Away Franchising shall use the Marketing Fund only for marketing, advertising, and public relations materials, programs and campaigns (including at local, regional, national, and/or international level), and related overhead. The foregoing includes such activities

and expenses as Bombs Away Franchising reasonably determines, and may include, without limitation: development and placement of advertising and promotions; sponsorships; contests and sweepstakes;

What This Means (2024 FDD)

According to the 2024 Bombs Away Franchise Disclosure Document, franchisees must adhere to specific guidelines when acquiring inputs (supplies, products, etc.) for their business. Bombs Away has the authority to mandate that franchisees purchase or lease inputs from specific sources, including Bombs Away itself, its designees, or approved/required vendors. These requirements can be modified at any time through updated System Standards.

If a franchisee wishes to use an alternate vendor or input, they must submit a written request for approval, providing any information, specifications, or samples requested by Bombs Away. Bombs Away has 30 days to respond to the request. Approval may be conditional, based on factors such as the vendor's capacity, quality, financial stability, and reputation. Bombs Away may also negotiate prices and terms with vendors on behalf of the entire franchise system and may receive rebates or other consideration from these vendors based on franchisee purchases.

Bombs Away has the right to collect payments from franchisees on behalf of vendors and may charge a fee for administering this payment program. They may also implement a centralized purchasing system or establish a purchasing cooperative that franchisees are required to join. Bombs Away assumes no liability 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.

Regarding marketing, Bombs Away franchisees must have all marketing, advertising, and public relations activities approved by Bombs Away Franchising. Franchisees must implement any marketing plans or campaigns determined by Bombs Away. Bombs Away may use any marketing materials developed by the franchisee and may establish a Marketing Fund to promote the system, using contributions from franchisees for marketing and related overhead.

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.