What is the deadline for a Bombs Away franchisee to submit an initial investment report?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
- 10.3 Initial Investment Report. Within 120 days after opening for business, Franchisee shall submit to Bombs Away Franchising a report detailing Franchisee's investment costs to develop and open the Business, with costs allocated to the categories described in Item 7 of Bombs Away Franchising's Franchise Disclosure Document and with such other information as Bombs Away Franchising may request.
Source: Item 22 — CONTRACTS (FDD pages 35–36)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, a franchisee must submit a report detailing their initial investment costs within 120 days after opening their business. This report should allocate costs to the categories outlined in Item 7 of the FDD and include any other information Bombs Away may request.
This requirement ensures that Bombs Away has a clear understanding of the franchisee's startup expenses. This information likely helps Bombs Away assess the financial health of new franchises and refine their financial models for future franchisees. It also allows Bombs Away to verify that the franchisee's actual investment aligns with the estimates provided in Item 7 of the FDD.
For a prospective Bombs Away franchisee, this means carefully tracking all investment costs from the outset. Maintaining detailed records and organizing expenses according to Item 7 categories will streamline the reporting process and ensure compliance with the franchise agreement. Failure to submit the report on time could potentially lead to penalties or other repercussions as outlined in the agreement.