Under what conditions can Bombs Away Franchising serve customers in a franchisee's territory?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
ng from Franchisee's breach. This fee is in addition to all of Bombs Away Franchising's other rights and remedies.
- (c) Exclusivity. Bombs Away Franchising shall not establish, nor license the establishment of, another business within the Territory or which serves customers located in the Territory selling the same or similar goods or services under the same or similar trademarks or service marks as a Bombs Away business. However, Bombs Away Franchising retains the right to:
- (i) serve (or authorize other franchisees to serve) customers in the Territory if Franchisee is in default, or if Franchisee is incapable of meeting customer demand in the Territory (in Bombs Away Franchising's reasonable opinion);
- (ii) serve (or authorize other franchisees to serve) a particular customer in the Territory if Franchisee fails to properly serve such customer, or if Bombs Away Franchising reasonably believes that Franchisee will not properly serve such customer;
- (iii) establish and license others to establish and operate Bombs Away businesses outside the Territory;
- (iv) operate and license others to operate businesses anywhere that do not operate under the Bombs Away brand name;
Source: Item 22 — CONTRACTS (FDD pages 35–36)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, Bombs Away Franchising retains specific rights regarding serving customers within a franchisee's protected territory. Bombs Away will not establish or license another business selling the same services under the Bombs Away brand within the franchisee's territory. However, Bombs Away Franchising can serve customers (or authorize other franchisees to do so) under certain circumstances.
These circumstances include situations where the franchisee is in default of their agreement, or if Bombs Away Franchising believes the franchisee is incapable of meeting customer demand within the territory. Bombs Away Franchising can also serve a specific customer if the franchisee fails to properly serve that customer, or if Bombs Away Franchising reasonably believes the franchisee will not provide proper service.
Additionally, Bombs Away Franchising retains the right to sell and license others to sell Bombs Away products and services to customers in the territory through different channels of distribution, including the internet, provided that such products and services are not offered through a Bombs Away outlet in the territory and are different from those provided by the franchisee. These stipulations outline specific scenarios where Bombs Away Franchising can operate within a franchisee's territory, balancing the franchisee's protected area with Bombs Away's broader business interests and customer service obligations.