factual

Who bears the expense of participating in Bombs Away's 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, franchisees are 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.

This means that franchisees must budget for these ongoing costs, which can include fees for the evaluation services themselves, as well as any costs associated with implementing changes or improvements identified through these programs. Bombs Away Franchising will share the results of these programs with the franchisee, as they pertain to the franchisee's business, and the franchisee must meet or exceed any minimum score requirements set by Bombs Away. Bombs Away Franchising may also set minimum scores that franchisees must receive from the public on internet review sites.

It is important for prospective franchisees to understand the potential financial impact of these programs and to factor these costs into their overall business plan. Failing to meet the minimum score requirements set by Bombs Away Franchising could result in penalties or other consequences, so it is crucial for franchisees to take these programs seriously and to invest the necessary resources to ensure compliance and customer satisfaction.

This type of requirement is fairly common in franchising, as franchisors seek to maintain consistent quality and customer service across all locations. However, the specific costs and requirements can vary widely, so it is important for prospective franchisees to carefully review the FDD and to ask the franchisor for more information about the expected costs and requirements of these programs.

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.