Does the additional funds estimate for a Bombs Away franchise include salary or compensation for the franchisee?

According to Bombs Away's 2024 Franchise Disclosure Document, the additional funds estimate does not include any salary or compensation for the franchisee. The FDD specifies that the additional funds cover expenses incurred before operations begin and during the initial period, such as payroll, additional inventory, and other operating expenses exceeding the business's income.

This means that prospective Bombs Away franchisees should not rely on the $5,000 to $15,000 estimated for additional funds to cover their personal salary or living expenses during the initial three months of operation. Franchisees must have separate financial resources to support themselves during this startup phase. This is a common practice in franchising, as many businesses take time to generate sufficient revenue to cover both business expenses and owner compensation.

Bombs Away based its estimate for additional funds on the development of a Bombs Away business by its affiliate and general industry knowledge. Franchisees should carefully consider their personal financial situation and ensure they have adequate capital to cover both the initial investment and their living expenses during the ramp-up period. It would be prudent to create a detailed personal budget and compare it against projected business revenues to determine if additional funding sources are needed.