Does Bombs Away or any affiliate offer financing for any part of the initial investment?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
Notes
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- None of the expenditures in this table will be refundable. Neither we nor any affiliate finances any part of your initial investment.
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- We estimate real property, leasehold improvements, and utilities at zero because we expect you will open as a home-based business.
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- You must use a vehicle appropriate for your business with our branded logo/wrap. We strongly recommend a midsize pickup truck, white in color, such as a Toyota Tundra or Nissan Frontier. It must be in excellent or better condition, clean, dent-free, and otherwise presenting a professional appearance. The low-end estimate assumes you already have a personal vehicle for the business. The high assumes you lease a new vehicle, with certain fees and costs payable upon signing the lease.
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- This includes any other required expenses you will incur before operations begin and during the initial period of operations, such as payroll, additional inventory, and other operating expenses in excess of income generated by the business. It does not include any salary or compensation for you. In formulating the amount required for additional funds, we relied on the following factors, basis, and experience: the development of a Bombs Away business by our affiliate, and our general knowledge of the industry.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 13–15)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, neither Bombs Away nor any affiliate offers financing for any part of the initial investment. This means that prospective franchisees must secure funding for the entire initial investment through their own means, such as personal savings, loans from banks or credit unions, or other external financing options.
The initial investment for a Bombs Away franchise ranges from $51,740 to $113,000. This investment covers various expenses, including the initial franchise fee ($30,000), market introduction program ($10,000 to $15,000), furniture, fixtures, and equipment ($100 to $500), computer systems ($1,000 to $3,500), insurance ($500 to $3,500), a vehicle ($0 to $30,000), signage ($1,000 to $2,500), inventory ($500 to $1,000), licenses and permits ($100 to $500), dues and subscriptions ($40 to $500), professional fees ($1,500 to $3,000), travel, lodging, and meals for initial training ($2,000 to $5,000), and additional funds for the first 3 months of operation ($5,000 to $15,000).
Since Bombs Away does not provide financing, franchisees should carefully consider their financial resources and explore all available funding options. Securing adequate financing is crucial for covering the initial investment and ensuring sufficient working capital during the early stages of the business. Franchisees should also factor in potential variations in costs and ensure they have a financial cushion to handle unexpected expenses. Given that real property, leasehold improvements, and utilities are estimated at zero with the expectation of a home-based business, franchisees need to verify if this aligns with their operational plans and local regulations.