What is the timeframe for Bombs Away Franchising to provide notice to a franchisee regarding non-payment?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
- (a) Subject to 10-Day Cure Period. Bombs Away Franchising may terminate this Agreement if Franchisee does not make any payment to Bombs Away Franchising when due, or if Franchisee does not have sufficient funds in its account when Bombs Away Franchising attempts an electronic funds withdrawal, and Franchisee fails to cure such non-payment within 10 days after Bombs Away Franchising gives notice to Franchisee of such breach.
Source: Item 22 — CONTRACTS (FDD pages 35–36)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, if a franchisee fails to make payments when due or lacks sufficient funds for electronic withdrawals, Bombs Away Franchising must provide the franchisee with a 10-day notice to cure the non-payment. This means that Bombs Away cannot immediately terminate the franchise agreement for non-payment.
For a prospective Bombs Away franchisee, this 10-day cure period offers a limited window to rectify any payment issues. This could be due to administrative errors, temporary cash flow problems, or other unforeseen circumstances. Failing to address the non-payment within this timeframe will allow Bombs Away Franchising to terminate the agreement.
It is important for franchisees to maintain diligent financial practices and open communication with Bombs Away Franchising to avoid payment-related defaults. Franchisees should also be aware of the various conditions that could lead to termination without a cure period, as outlined in the franchise agreement.