Upon termination or expiration of the Bombs Away franchise agreement, what must the franchisee do regarding amounts owed to Bombs Away Franchising?

According to Bombs Away's 2024 Franchise Disclosure Document, upon termination or expiration of the franchise agreement, the franchisee must immediately pay all amounts owed to Bombs Away Franchising. This includes any amounts based on the operation of the business through the effective date of termination or expiration. This obligation is part of the broader set of requirements that survive the termination or expiration of the agreement, such as those related to non-competition, confidentiality, indemnity, and dispute resolution.

This requirement ensures that Bombs Away receives all outstanding payments for the franchisee's operation up to the point of termination or expiration. It is a standard practice in franchising to settle all financial obligations when a franchise agreement ends. Franchisees should maintain accurate financial records and be prepared to reconcile accounts with Bombs Away to ensure a smooth transition.

Failure to promptly pay all outstanding amounts could result in further legal action or financial penalties, as Bombs Away retains the right to pursue any unpaid debts. Franchisees should carefully review their financial obligations and consult with Bombs Away to clarify any outstanding balances before the termination or expiration date to avoid potential disputes.