What do the actual costs charged by Bombs Away include?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Our actual costs | Payable if we incur costs (including | ||
| reasonable attorney fees) in attempting to | |||
| collect amounts you owe to us. | |||
| Currently $600, plus | On demand | Payable only if we conduct an in-person | |
| our out-of-pocket | evaluation of your business because of a | ||
| costs | governmental report, customer complaint | ||
| or other customer feedback, or your | |||
| default or non-compliance with any | |||
| system specification. | |||
| We may cure your non-compliance on | |||
| your behalf (for example, if you do not | |||
| have required insurance, we may purchase | |||
| insurance for you), and you will owe our | |||
| costs plus a 10% administrative fee. | |||
| Our costs and losses | You must indemnify and defend (with | ||
| from any legal | counsel reasonably acceptable to us) us | ||
| action related to the | and our affiliates against all losses in any | ||
| operation of your | action by or against us related to, or | ||
| franchise | alleged to arise out of, the operation of | ||
| your franchise (unless caused by our | |||
| misconduct or negligence). | |||
| Our attorney fees, | In any legal proceeding (including | ||
| court costs, and | arbitration), the losing party must pay the | ||
| other expenses of a | prevailing party’s attorney fees, court | ||
| legal proceeding, if | costs and other expenses. | ||
| we are the prevailing | |||
| party |
Source: Item 6 — OTHER FEES (FDD pages 9–13)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, the franchise may charge franchisees their actual costs in certain situations. Specifically, if Bombs Away incurs costs, including reasonable attorney fees, while attempting to collect amounts owed by the franchisee, these costs will be charged to the franchisee.
Bombs Away may also conduct an in-person evaluation of a franchisee's business due to a governmental report, customer complaint, or non-compliance with system specifications. In these instances, the franchisee is responsible for covering Bombs Away's out-of-pocket costs, in addition to a fee of $600. Furthermore, if a franchisee does not maintain required insurance, Bombs Away may purchase it on their behalf, and the franchisee will owe Bombs Away's costs plus a 10% administrative fee.
Finally, Bombs Away outlines that franchisees are responsible for indemnifying and defending Bombs Away and its affiliates against all losses from any legal action related to the operation of their franchise, unless the action is caused by Bombs Away's misconduct or negligence. In any legal proceeding, the losing party is responsible for covering the prevailing party's attorney fees, court costs, and other expenses.