Which Bombs Away affiliate will derive revenue from the required purchases and leases by franchisees?

According to Bombs Away's 2024 Franchise Disclosure Document, Bombs Away Brand, LLC, an affiliate of Bombs Away, will derive revenue from the required purchases and leases made by franchisees. The FDD states that Bombs Away itself will not derive revenue from these required purchases and leases. In 2023, Bombs Away Brand, LLC's revenue from all required purchases and leases of products and services by franchisees was $0, as Bombs Away is a new franchisor.

This arrangement means that while Bombs Away may set the standards and requirements for what franchisees must purchase or lease, the financial benefit from those purchases flows to its affiliate, Bombs Away Brand, LLC. This is a common practice in franchising, where a parent company may have different subsidiaries or affiliates handling various aspects of the business, including supply chain management and revenue generation.

Prospective franchisees should be aware that they are required to purchase customized litter box covers for the Van Ness® CP2 large litter from Bombs Away Brand, LLC. Additionally, franchisees are obligated to use specific computer software and hardware, purchase CRM Management administrative services from an approved supplier, and utilize a vehicle with the Bombs Away branded logo/wrap. The FDD estimates that required purchases and leases to establish and operate the business account for 25% to 50% of the franchisee's total purchases and leases. Franchisees should carefully consider these required purchases and leases, as they will directly impact their initial and ongoing operational costs.