Does the Bombs Away financial performance representation reflect other costs or expenses?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
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1/01/2023 – 12/31/2023 Financial Results
The following chart contains the January 1st, 2023 to December 31st, 2023 financial performance information for the Bombs Away! business owned by our affiliate that was open for this time period. This location is in California.
Gross Sales: $419,423
Estimated Royalty Fees: $33,554 Estimated Marketing Fund: $8,389
Notes:
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- The foregoing information shows historical financial performance.
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- There was a total of one Bombs Away! business open for this time frame which is owned by our Affiliate.
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- "Gross Sales" means total of all collected revenue in a period, not including discounts, taxes, tips/gratuity or voids.
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Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 31–33)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, the financial performance representation provided does not reflect all the costs associated with operating a Bombs Away business. The financial performance representation for the period of January 1, 2023, to December 31, 2023, includes the gross sales of $419,423, estimated royalty fees of $33,554, and an estimated marketing fund contribution of $8,389 for a Bombs Away business owned by an affiliate in California.
Specifically, the FDD states that the financial performance representation does not account for costs of sales, operating expenses, or other costs that would need to be deducted from the gross revenue to determine net income or profit. This means that while the gross sales figure provides a top-line revenue number, it does not give a complete picture of the potential profitability of a Bombs Away franchise.
Therefore, a prospective Bombs Away franchisee should conduct their own independent investigation to determine all the costs and expenses they will incur while operating the business. The FDD suggests that potential franchisees consult current or former franchisees listed in Item 20 of the FDD to gather more information on these costs. Understanding these costs is crucial for accurately assessing the potential financial returns from a Bombs Away franchise.