Is Bombs Away subject to a currently effective restrictive order relating to the franchise?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
Except as provided above, with regard to the franchisor, its predecessor, a person identified in Item 2, or an affiliate offering franchises under the franchisor's principal trademark:
- D. No such party is subject to a currently effective injunctive or restrictive order or decree relating to the franchise, or under a Federal, State, or Canadian franchise, securities, antitrust, trade regulation or trade practice law, resulting from a concluded or pending
action or proceeding brought by a public agency; or is subject to any currently effective order of any national securities association or national securities exchange, as defined in the Securities and Exchange Act of 1934, suspending or expelling such person from membership in such association or exchange; or is subject to a currently effective injunctive or restrictive order relating to any other business activity as a result of an action brought by a public agency or department, including, without limitation, actions affecting a license as a real estate broker or sales agent.
Source: Item 23 — RECEIPTS (FDD pages 36–117)
What This Means (2024 FDD)
According to the 2024 Bombs Away Franchise Disclosure Document, Item 23 includes an addendum to Item 3 which states that unless otherwise provided, no party is subject to a currently effective injunctive or restrictive order or decree relating to the franchise, or under a Federal, State, or Canadian franchise, securities, antitrust, trade regulation or trade practice law, resulting from a concluded or pending action or proceeding brought by a public agency. Nor is any party subject to any currently effective order of any national securities association or national securities exchange, as defined in the Securities and Exchange Act of 1934, suspending or expelling such person from membership in such association or exchange; or is subject to a currently effective injunctive or restrictive order relating to any other business activity as a result of an action brought by a public agency or department, including, without limitation, actions affecting a license as a real estate broker or sales agent.
This statement indicates that Bombs Away and its related parties are not currently under any restrictive orders that would prevent them from operating or offering franchises. This is a standard disclosure in franchise agreements, intended to assure potential franchisees that the franchisor is in good standing and free from legal constraints that could impact the franchise system.
However, it is important for a prospective Bombs Away franchisee to understand that this statement is based on the information available at the time of the FDD's issuance. To ensure that no changes have occurred since then, a potential franchisee should consider asking Bombs Away for an updated confirmation of this status during their due diligence process. Additionally, consulting with an attorney can help in verifying the accuracy and completeness of this information.