What details must be included in the Bombs Away franchisee's 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, within 120 days of opening their business, franchisees must submit a report detailing their investment costs. This report must allocate costs to the categories described in Item 7 of the Bombs Away Franchise Disclosure Document.
In essence, Bombs Away requires franchisees to provide a comprehensive breakdown of all expenses incurred during the development and opening phase of their franchise. This includes categorizing these costs according to the specific categories outlined in Item 7 of the FDD, which typically covers expenses such as the initial franchise fee, real estate, equipment, inventory, and working capital.
In addition to the categorized costs, Bombs Away may request other information in this report. This allows Bombs Away to gain a clear understanding of the franchisee's financial investment and ensure consistency across all franchise locations. Prospective franchisees should carefully review Item 7 of the FDD and prepare to meticulously track and report all initial investment costs to comply with Bombs Away's reporting requirements.