What does the Bombs Away fee for selling my business include, besides $7,500?
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 $7,500. In addition to this flat fee, you must also pay any broker fees associated with the sale. You are also responsible for covering any out-of-pocket costs that Bombs Away incurs during the sale of your franchise.
Furthermore, Bombs Away will also collect 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 means that if you sell your franchise with less than two years remaining on the term, you will need to pay the equivalent of the royalty and marketing fees for the time remaining. If there are more than two years remaining, you will need to pay the equivalent of two years' worth of these fees.
These fees can significantly impact the profitability of selling your Bombs Away franchise. It is important for prospective franchisees to consider these costs when evaluating the potential return on investment and the overall financial implications of the franchise agreement. Understanding these obligations upfront can help franchisees make informed decisions about their long-term business strategy and exit plan.