Under what conditions can a Bombs Away franchisee terminate the franchise agreement?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
| Provision | Section in franchise or | |
|---|---|---|
| other agreement | ||
| d. Termination by | If we violate a material provision of the | |
| franchisee | franchise agreement and fail to cure or to make substantial progress toward curing the violation within 30 days after notice from you. |
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, a franchisee can terminate the franchise agreement if Bombs Away violates a material provision of the agreement. However, Bombs Away must fail to cure the violation or make substantial progress toward curing it within 30 days after receiving notice from the franchisee.
This means that a Bombs Away franchisee cannot simply terminate the agreement for any minor issue. The violation must be 'material,' meaning it significantly impacts the franchisee's ability to operate the business or affects the overall franchise system. Furthermore, the franchisee must provide written notice to Bombs Away, giving them 30 days to fix the problem. If Bombs Away takes appropriate corrective action within that timeframe, the franchisee cannot terminate the agreement.
This termination clause is fairly standard in franchising. It protects both the franchisee and the franchisor. It ensures that Bombs Away is given an opportunity to resolve any issues before the franchisee can terminate the agreement, while also providing the franchisee with a way out if Bombs Away fails to meet its obligations. Prospective franchisees should carefully consider what constitutes a 'material' breach and the steps required to provide proper notice to Bombs Away.