What are the fees paid to suppliers that Bombs Away franchisees can expect?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Fee | Amount | Due Date | Remarks | ||
|---|---|---|---|---|---|
| Currently, $30-$100 | We require you to use certain software as | ||||
| per staff member, | described in Item 11. You pay | ||||
| per month; also | subscription/technology fees directly to | ||||
| fees paid to | us. | ||||
| suppliers: $35 up to | |||||
| 5 vehicles per month | |||||
| or $8/vehicle/mo for | |||||
| GPS tracking, | |||||
| $25/month for single | |||||
| user for phone | |||||
| system paid; $25 per | |||||
| background check; | |||||
| $25/month | |||||
| Quickbooks Online; | |||||
| optional payroll | |||||
| supplier fee | |||||
| $80based on | |||||
| number of | |||||
| employees | |||||
| Pass-through of | Varies | We have the right to require franchisees to | |||
| costs, plus | use third-party vendors and suppliers that | ||||
| reasonable | we designate. Examples can include | ||||
| administrative | computer support vendors, mystery | ||||
| charge. Currently, | shopping, and customer feedback systems. | ||||
| none. | The vendors and suppliers may bill | ||||
| franchisees directly, or we have the right | |||||
| to collect payment for these vendors | |||||
| together with a reasonable markup or | |||||
| charge for administering the payment | |||||
| program. |
Source: Item 6 — OTHER FEES (FDD pages 9–13)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, franchisees can expect to pay fees to suppliers for various services. These fees include $35 up to 5 vehicles per month or $8 per vehicle per month for GPS tracking. Additionally, there is a $25 per month fee for a single user phone system, a $25 per background check, and $25 per month for Quickbooks Online. There is also an optional payroll supplier fee of $80, which is based on the number of employees.
Bombs Away franchisees are also required to use certain software, and they will pay subscription/technology fees directly to Bombs Away. The FDD also mentions that Bombs Away has the right to require franchisees to use designated third-party vendors and suppliers for services like computer support, mystery shopping, and customer feedback systems. These vendors and suppliers may bill franchisees directly, or Bombs Away may collect payment for these vendors, potentially with a reasonable markup or charge for administering the payment program.
It is important for prospective Bombs Away franchisees to understand these supplier fees as they contribute to the overall cost of running the franchise. Franchisees should inquire about the specific software and third-party vendors required, as well as any potential markups or administrative charges Bombs Away may apply. Understanding these costs upfront will help franchisees budget accurately and manage their expenses effectively.