Are there any penalties if a Bombs Away franchisee sells unapproved goods or services?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
7.3 Products and Services. Franchisee shall offer all products and services, and only those products and services, from time to time prescribed by Bombs Away Franchising in the Manual or otherwise in writing. Franchisee shall provide all products and perform all services in a highquality manner that meets or exceeds the customer's reasonable expectations and all applicable System Standards.
11.2 Business Evaluation. Bombs Away Franchising may accompany Franchisee or its personnel on any services performed for a customer to conduct an evaluation.
If Bombs Away Franchising conducts an evaluation because of a governmental report, customer complaint or other customer feedback, or a default or non-compliance with any System Standard by Franchisee (including following up a previous failed evaluation), then Bombs Away Franchising may charge all out-ofpocket expenses plus its then-current evaluation fee to Franchisee.
- 11.3 Bombs Away Franchising's Right to Cure. If Franchisee breaches or defaults under any provision of this Agreement, Bombs Away Franchising may (but has no obligation to) take any action to cure the default on behalf of Franchisee, without any liability to Franchisee.
Franchisee shall reimburse Bombs Away Franchising for its costs and expenses (including the allocation of any internal costs) for such action, plus 10% as an administrative fee.
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, franchisees are required to offer only those products and services that Bombs Away prescribes in its manual or in writing. If a Bombs Away franchisee offers products or services that are not approved, it would constitute a failure to comply with the System Standards.
While the FDD does not explicitly state monetary penalties for selling unapproved goods or services, it does state that Bombs Away may conduct evaluations to ensure compliance with System Standards. If an evaluation is conducted due to non-compliance with any System Standard, Bombs Away may charge the franchisee for all out-of-pocket expenses plus its then-current evaluation fee. Additionally, failure to meet or exceed the minimum score requirement for evaluations will be a default under the Franchise Agreement.
Furthermore, if a Bombs Away franchisee breaches any provision of the Franchise Agreement, Bombs Away has the right to take action to cure the default on behalf of the franchisee, without any liability to the franchisee. The franchisee is then required to reimburse Bombs Away for all costs and expenses incurred, including a 10% administrative fee. Therefore, offering unapproved products or services could lead to Bombs Away taking corrective actions and charging the franchisee for associated costs.