What documentation must Bombs Away Franchising provide when seeking reimbursement for payments made on behalf of the franchisee?

According to Bombs Away's 2024 Franchise Disclosure Document, if Bombs Away pays an amount that a franchisee owes to a supplier or other third party, Bombs Away may seek reimbursement from the franchisee. To do so, Bombs Away must provide an invoice to the franchisee accompanied by reasonable documentation.

The franchisee is then obligated to pay the invoiced amount, plus a 10% administrative charge, to Bombs Away within 15 days of the invoice date. This arrangement allows Bombs Away to assist franchisees with their financial obligations, but it also places a responsibility on the franchisee to promptly settle these debts to avoid additional charges.

This type of arrangement is not uncommon in franchising, as franchisors often have established relationships with suppliers and can negotiate favorable terms on behalf of their franchisees. However, it's important for prospective Bombs Away franchisees to understand the terms of this reimbursement policy and to budget accordingly to ensure they can meet their financial obligations to both suppliers and the franchisor.