Upon termination or non-renewal, is a Bombs Away franchisee required to cease doing business?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
| Provision | Section in franchise or | Summary |
|---|---|---|
| i. Franchisee’s obligations | Pay all amounts due; return Manual and | |
| on termination/non- | ||
| renewal | proprietary items; notify phone, internet, and other providers and transfer service; cease doing business; remove identification; purchase option by us. |
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, franchisees have obligations upon termination or non-renewal of their franchise agreement. Specifically, they must cease doing business.
In addition to ceasing operations, Bombs Away franchisees must also pay all amounts due to the company. They are required to return the Bombs Away Manual and any other proprietary items. Franchisees must also notify phone, internet, and other service providers to transfer service away from Bombs Away. Finally, franchisees must remove any identification indicating affiliation with the Bombs Away brand.
These obligations are typical in franchising to protect the brand and ensure a clean break between the franchisee and franchisor. The franchisor may also have a purchase option on termination or non-renewal.