What administrative charge does Bombs Away Franchising add to any amount they pay on behalf of a Bombs Away franchisee?

According to Bombs Away's 2024 Franchise Disclosure Document, if Bombs Away Franchising chooses to pay any amount that a franchisee owes to a supplier or other third party, the franchisee must repay that amount to Bombs Away. In addition to the original amount, Bombs Away will also charge a 10% administrative fee.

For a prospective Bombs Away franchisee, this means that if you are unable to pay a supplier, Bombs Away has the option to step in and cover the payment. However, this is not an obligation on their part. If Bombs Away does pay on your behalf, you will be responsible for reimbursing them for the full amount plus an additional 10% administrative fee.

This policy could be beneficial in a situation where a franchisee is temporarily short on funds but needs to maintain good relationships with suppliers. However, it's crucial to be aware of the additional 10% charge, as this increases the overall cost of relying on Bombs Away to cover payments. Franchisees should aim to manage their finances responsibly to avoid needing Bombs Away to make payments on their behalf and incurring the extra administrative charge.