For a Bombs Away franchise, when is the monthly Royalty Fee due?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
- 4.2 Royalty Fee. Franchisee shall pay Bombs Away Franchising a monthly royalty fee (the "Royalty Fee") equal to 8% of Gross Sales. The Royalty Fee for any given month is due on the 2nd day of the following month.
4.3 Marketing Fund Contribution.
Source: Item 22 — CONTRACTS (FDD pages 35–36)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, the monthly Royalty Fee is due on the 2nd day of the following month. This means that the Royalty Fee for January's gross sales is due on February 2nd. The Royalty Fee is 8% of Gross Sales.
Bombs Away requires franchisees to report their monthly Gross Sales by the 2nd day of the following month. If a franchisee fails to report their monthly Gross Sales, Bombs Away may withdraw estimated Royalty Fees equal to 125% of the last Gross Sales reported. After the franchisee reports Gross Sales, the parties will reconcile the actual fees.
Bombs Away franchisees must pay the Royalty Fee via pre-authorized bank draft or in another manner that Bombs Away may require. If a franchisee does not make a payment on time, Bombs Away charges a $100 late fee plus interest on the unpaid amount at a rate of 18% per year (or the highest rate allowed by law).