Does Bombs Away currently receive revenue from required franchisee purchases and leases?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
iliates as Supplier
We currently do not derive revenue from the required purchases and leases by franchisees.
We reserve the right to be a supplier (or the sole supplier) of a good or service in the future.
Our affiliate, Bombs Away Brand, LLC is currently a supplier of the customized litter box covers for the Van Ness® CP2 large litter that y
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 15–17)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, Bombs Away does not currently receive revenue from required franchisee purchases and leases. However, Bombs Away's affiliate, Bombs Away Brand, LLC, does derive revenue from these required purchases and leases. In 2023, Bombs Away Brand, LLC's revenue from these purchases and leases was $0, as Bombs Away is a new franchisor. Bombs Away also states that it reserves the right to be a supplier (or the sole supplier) of a good or service in the future. Bombs Away's officer owns an interest in a supplier to franchisees. Franchisees must purchase customized litter box covers for the Van Ness® CP2 large litter from Bombs Away's affiliate.
Bombs Away does negotiate purchase arrangements with suppliers, including price terms, for the benefit of franchisees, but this is subject to change. Bombs Away also utilizes the Wysiwash® referral program, where Bombs Away will get $10 for each product sold, and the referee/franchisee will get a $10 discount on the product.
Bombs Away estimates that required purchases and leases to establish the business are 25% to 50% of the total purchases and leases to establish the business. The same percentage applies to the required purchases and leases of goods and services to operate the business. Franchisees are obligated to purchase specific items such as insurance, computer software and hardware, customized litter box covers, CRM Management administrative services, and a vehicle with branded logo/wrap.