Upon renewal of a Bombs Away franchise, can the territory be changed?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
- (i) Franchisee notifies Bombs Away Franchising of the election to renew between 90 and 180 days prior to the end of the term;
- (ii) Franchisee (and its affiliates) are in compliance with this Agreement and all other agreements with Bombs Away Franchising (or any of its affiliates) at the time of election and at the time of renewal;
- (iii) Franchisee has made or agrees to make (within a period of time acceptable to Bombs Away Franchising) changes to the Business as Bombs Away Franchising requires to conform to the then-current System Standards;
- (iv) Franchisee and its Owners execute Bombs Away Franchising's then-current standard form of franchise agreement and related documents (including personal guaranty), which may be materially different than this form (including, without limitation, higher and/or different fees), except that (A) Franchisee will not pay another initial franchise fee, (B) Franchisee will not receive more renewal or successor terms than described in this Section, and (C) the Territory will not be changed;
- (v) Franchisee and each Owner executes a general release (on Bombs Away Franchising's then-standard form) of any and all claims against Bombs Away Franchising, its affiliates, and their respective owners, officers, directors, agents and employees.
Source: Item 22 — CONTRACTS (FDD pages 35–36)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, the territory will not be changed upon renewal. To renew the franchise agreement, a franchisee must notify Bombs Away of their election to renew between 90 and 180 days prior to the end of the term. The franchisee must also be in compliance with the existing agreement and any other agreements with Bombs Away at the time of election and renewal.
Additionally, the franchisee must make or agree to make changes to the business as required by Bombs Away to conform to the then-current System Standards. The franchisee and its owners must execute Bombs Away's current standard form of franchise agreement and related documents, which may be materially different than the original agreement, potentially including higher or different fees.
However, the franchisee will not pay another initial franchise fee, will not receive more renewal or successor terms than described in the relevant section of the agreement, and, importantly, the territory will not be changed. Finally, the franchisee and each owner must execute a general release of any and all claims against Bombs Away and its affiliates.