What fee is payable to Bombs Away if I sell my Bombs Away business?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Currently $600, plus | On demand | Payable only if we conduct an in-person | |
| our out-of-pocket | evaluation of your business because of a | ||
| costs | governmental report, customer complaint | ||
| or other customer feedback, or your | |||
| default or non-compliance with any | |||
| system specification. | |||
| We may cure your non-compliance on | |||
| your behalf (for example, if you do not | |||
| have required insurance, we may purchase | |||
| insurance for you), and you will owe our | |||
| costs plus a 10% administrative fee. | |||
| $7,500 plus any | Payable if you sell your business. | ||
| broker fees and other | |||
| out-of-pocket costs | |||
| we incur | |||
| An amount equal to | |||
| royalty fees and | |||
| marketing fund | |||
| contributions for the | |||
| lesser of (i) 2 years | |||
| or (ii) the remaining | |||
| weeks of the | |||
| franchise term. |
Source: Item 6 — OTHER FEES (FDD pages 9–13)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, if you sell your Bombs Away business, you will be required to pay a fee. This fee consists of $7,500, in addition to any broker fees and other out-of-pocket costs that Bombs Away incurs during the sale.
Additionally, you must pay Bombs Away an amount equal to the royalty fees and marketing fund contributions for either two years or the remaining weeks of the franchise term, whichever is less. This could represent a substantial cost, depending on how far into the franchise term you are and the prevailing royalty and marketing fund contribution rates at the time of sale.
These fees are payable to Bombs Away upon the sale of your franchise. It is important for prospective franchisees to consider these costs when evaluating the potential profitability of a Bombs Away franchise and planning for a future exit strategy.