Under what circumstances can Bombs Away terminate my franchise agreement for cause?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
| Provision | Section in franchise or | Summary |
|---|---|---|
| f. Termination by | § 14.2 | We may terminate your franchise |
| franchisor with cause | agreement for cause, subject to any applicable notice and cure opportunity. | |
| g. “Cause” defined-- | Non-payment by you (10 days to cure); | |
| curable defaults | violate franchise agreement other than non- curable default (30 days to cure). | |
| h. “Cause” defined--non- | Misrepresentation when applying to be a | |
| curable defaults | franchisee; knowingly submitting false information; bankruptcy; violation of law; violation of confidentiality; violation of non-compete; violation of transfer restrictions; slander or libel of us; refusal to cooperate with our audit or evaluation; cease operations for more than 15 consecutive days; three defaults in 12 months; cross-termination; conviction of, or plea to, a felony, commit or be accused of an act that is reasonably likely to materially and unfavorably affect our brand; any other breach of franchise agreement which by its nature cannot be cured. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 28–31)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, Bombs Away can terminate a franchise agreement with cause, subject to any applicable notice and cure opportunity. The FDD outlines two categories of defaults that constitute cause for termination: curable defaults and non-curable defaults.
Curable defaults include non-payment, where the franchisee has 10 days to cure the default, and violating any other term of the franchise agreement, other than a non-curable default, where the franchisee has 30 days to cure.
Non-curable defaults include misrepresentation when applying to be a franchisee, knowingly submitting false information, bankruptcy, violation of law, violation of confidentiality, violation of non-compete, violation of transfer restrictions, slander or libel of Bombs Away, refusal to cooperate with an audit or evaluation, ceasing operations for more than 15 consecutive days, three defaults in 12 months, cross-termination, conviction of, or plea to, a felony, committing or being accused of an act that is reasonably likely to materially and unfavorably affect the Bombs Away brand, and any other breach of the franchise agreement which by its nature cannot be cured.