Does Bombs Away specify the territory boundaries for each franchise?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
but we have the right to do so.
Item 12 TERRITORY
Your Location
We anticipate that you will manage from your home or from a small office setting. Your primary office must be located in your territory.
Grant of Territory
Your franchise agreement will specify a territory, which will have a population of a minimum of 500,000 people. This will then be weighed against the population base's income levels per household. The boundaries of your territory will be specified by zip codes, county or city lines, or some other limit.
Relocation; Establishment of Additional Outlets
You may relocate your business headquarters anywhere in your territory.
You do not have the right to establish additional franchised outlets or expand into additional territory. If you desire to do so, you must (1) meet our then-current criteria for new franchisees, (2) be in compliance with your franchise agreement at all times since opening your business, (3) have demonstrated your capability to operate a multi-territory franchise successfully, and (4) obtain our agreement.
Options to Acquire Additional Franchises
You do not receive any options, rights of first refusal, or similar rights to acquire additional franchises.
Exclusivity
We grant you an exclusive territory. In your territory, we will not establish either a company-owned or franchised outlet selling the same or similar goods or services under the same or similar trademarks or service marks as a Bombs Away outlet. Continuation of your territorial
exclusivity does not depend on any contingency. There are no circumstances that permit us to modify your territorial rights.
Restrictions on Us from Soliciting or Accepting Orders in Your Territory
Except as described in this paragraph, we will not serve customers in your territory, nor authorize another party to serve customers in your territory, under our Bombs Away brand. However, we may serve (or authorize other franchisees to serve) customers in your territory if you are in default, or if you are incapable of meeting customer demand in your territory. We may also serve (or authorize another franchisee to serve) a particular customer in your territory if you fail to properly serve such customer, or if we reasonably believe that you will not properly serve such customer. We reserve the right to use other channels of distribution, such as the internet, catalog sales, telemarketing, or other direct marketing sales, to make sales within your territory (i) using our principal trademarks, but only for sales of products or services different from the ones you will offer, and (ii) using trademarks different from the ones you will use. In the circumstances where the franchise agreement does not prohibit us from soliciting or accepting orders from inside your territory, we do not pay any compensation to you.
Soliciting by You Outside Your Territory
You cannot solicit or market to potential customers outside of your territory, except for solicitations or marketing which are primarily targeted inside the territory and which incidentally reach potential customers outside of the territory. You cannot serve customers outside of your territory without our prior written permission. We may withdraw permission at any time.
Competition by Us Under Different Trademarks
Neither we nor any of our affiliates operates, franchises, or has plans to operate or franchise a business under a different trademark selling goods or services similar to those you will offer. However, the franchise agreement does not prohibit us from doing so.
Item 13 TRADEMARKS
Principal Trademark
The following are the principal trademarks that we license to you. These trademarks are owned by Us. It is registered on the Principal Register of the United States Patent and Trademark Office. All required affidavits have been filed.
| Trademark | Registration Date | Registration Number | Renewal Date | |-------------|----------------------|------------------------|----------------------| | | October 31, 2017 | 5322693 | October 31, 2027 | | Bombs Away! | November, 21 2023 | 7224671 | November, 21 2029 |
| Solutions to Close the Loop on Poop | November, 21 2023 | 7223862 | November, 21 2029 |
|---|---|---|---|
| They Poop, You Call, We | November, 21 2023 | 7223863 | November, 21 2029 |
| Scoop |
Determinations
There are no currently effective material determinations of the United States Patent and Trademark Office, the Trademark Trial and Appeal Board, or any state trademark administrator or court.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD pages 27–28)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, the franchise agreement specifies a territory for each franchisee. This territory will have a minimum population of 500,000. Franchisees are expected to manage their Bombs Away business from their home or a small office located within their designated territory.
Bombs Away grants franchisees the right to operate their business solely within their assigned territory for the duration of the agreement. Franchisees are restricted from actively soliciting or marketing to potential customers outside their territory, except for marketing efforts primarily focused within their territory that may incidentally reach customers outside it. Serving customers outside the territory requires prior written permission from Bombs Away Franchising, which can be withdrawn at any time. Serving customers outside the designated territory without permission may result in a fee equal to the greater of $500 or 75% of the amount paid by the customer to the franchisee.
Bombs Away Franchising also commits not to establish or license another business within the franchisee's territory that would sell similar goods or services under the same trademarks. However, Bombs Away Franchising retains certain rights, including serving customers in the territory if the franchisee is in default or unable to meet demand, serving specific customers if the franchisee fails to do so properly, establishing Bombs Away businesses outside the territory, operating businesses under different brand names, and selling Bombs Away products through other distribution channels as long as they are different from those offered by the franchisee and not through a Bombs Away outlet in the territory.
These territorial protections do not depend on any specific conditions and Bombs Away states that there are no circumstances that would allow them to modify a franchisee's territorial rights. However, Bombs Away retains the right to use other channels of distribution, such as the internet, catalog sales, telemarketing, or other direct marketing sales, to make sales within your territory (i) using their principal trademarks, but only for sales of products or services different from the ones you will offer, and (ii) using trademarks different from the ones you will use.