Upon termination or expiration of the Bombs Away franchise agreement, what must the franchisee do with Confidential Information on electronic devices?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
a felony; or
- (xiii) Franchisee or any Owner is accused by any governmental authority or third party of any act, or if Franchisee or any Owner commits any act or series of acts, that in Bombs Away Franchising's opinion is reasonably likely to materially and unfavorably affect the Bombs Away brand.
- 14.3 Effect of Termination. Upon termination or expiration of this Agreement, all obligations that by their terms or by reasonable implication survive termination, including those pertaining to
non-competition, confidentiality, indemnity, and dispute resolution, will remain in effect, and Franchisee must immediately:
- (i) pay all amounts owed to Bombs Away Franchising based on the operation of the Business through the effective date of termination or expiration;
Source: Item 22 — CONTRACTS (FDD pages 35–36)
What This Means (2024 FDD)
According to the 2024 Bombs Away Franchise Disclosure Document, upon termination or expiration of the franchise agreement, the franchisee is obligated to delete all Confidential Information and proprietary materials from electronic devices. This requirement is part of the broader obligations that survive the termination or expiration of the agreement, which also include matters pertaining to non-competition, confidentiality, indemnity, and dispute resolution.
This provision ensures that Bombs Away's sensitive business information remains protected even after the franchise relationship ends. Confidential Information includes, but is not limited to, customer data and other non-public data generated by the business, which is exclusively owned by Bombs Away. The franchisee's responsibility to maintain confidentiality extends both during and after the term of the agreement.
For a prospective Bombs Away franchisee, this means that they must have systems in place to securely manage and, when necessary, completely remove Confidential Information from all electronic devices used in the operation of the franchise. Failure to comply with this requirement could result in legal repercussions, as Bombs Away retains ownership of this information and has the right to protect it. Franchisees should seek clarification from Bombs Away regarding acceptable methods for data deletion to ensure compliance with this clause.