factual

Who bears the expense of a Bombs Away franchisee's participation in customer evaluation and compliance programs?

Bombs_Away Franchise · 2024 FDD

Answer from 2024 FDD Document

  • 7.9 Evaluation and Compliance Programs. Franchisee shall participate at its own expense in programs required from time to time by Bombs Away Franchising for obtaining customer evaluations, reviewing Franchisee's compliance with the System, and/or managing customer complaints, which may include (but are not limited to) a customer feedback system, customer survey programs, and mystery shopping.

Bombs Away Franchising shall share with Franchisee the results of these programs, as they pertain to the Business.

Franchisee must meet or exceed any minimum score requirements set by Bombs Away Franchising for such programs.

Bombs Away Franchising may set minimum scores that Franchisee must receive from the public on internet review sites (such as Yelp or Google).

Source: Item 22 — CONTRACTS (FDD pages 35–36)

What This Means (2024 FDD)

According to Bombs Away's 2024 Franchise Disclosure Document, the franchisee is responsible for the expenses associated with participating in customer evaluation and compliance programs. These programs are required by Bombs Away Franchising and are designed to obtain customer evaluations, review the franchisee's compliance with the Bombs Away system, and manage customer complaints. These programs may include customer feedback systems, customer survey programs, and mystery shopping. Bombs Away Franchising will share the results of these programs with the franchisee as they pertain to their specific business.

This means that a Bombs Away franchisee will need to budget for these ongoing expenses, which can vary depending on the specific programs implemented by Bombs Away Franchising. It is important for prospective franchisees to understand the potential costs associated with these programs and factor them into their overall financial projections. The franchisee must also meet or exceed any minimum score requirements set by Bombs Away Franchising for these programs, and Bombs Away Franchising may also set minimum scores that the franchisee must receive from the public on internet review sites.

Bombs Away's requirement for franchisees to bear the costs of evaluation and compliance programs is a fairly standard practice in franchising. These programs help ensure consistent service quality and brand reputation across all franchise locations. However, the specific types of programs and their associated costs can vary significantly between franchise systems. Therefore, it is crucial for prospective Bombs Away franchisees to inquire about the details of these programs and their estimated expenses during their due diligence process.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.