Are there any circumstances that permit Bombs Away to modify a franchisee's territorial rights?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
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.
Source: Item 12 — TERRITORY (FDD pages 23–24)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, there are specific circumstances that allow Bombs Away to modify a franchisee's territorial rights. Bombs Away retains the right to serve customers or authorize other franchisees to do so within a franchisee's territory if the franchisee is in default or incapable of meeting customer demand. Additionally, Bombs Away can serve or authorize others to serve a specific customer within the territory if the franchisee fails to properly serve that customer or if Bombs Away reasonably believes the franchisee will not do so.
Bombs Away also reserves the right to use other channels of distribution, such as the internet, catalog sales, telemarketing, or other direct marketing sales, to make sales within a franchisee's territory. This is permitted (i) using Bombs Away's principal trademarks, but only for sales of products or services different from the ones the franchisee will offer, and (ii) using trademarks different from the ones the franchisee will use. These stipulations provide Bombs Away with considerable latitude to operate within a franchisee's territory under certain conditions.
These conditions are important for a prospective franchisee to consider. While Bombs Away grants a protected territory, this protection is not absolute. Bombs Away retains significant rights to operate within the territory under specific circumstances, which could impact the franchisee's potential customer base and revenue. A franchisee should carefully evaluate these potential exceptions and understand how they might affect their business operations and profitability.