What is the Bombs Away franchisee's obligation if the business is not in compliance with system specifications?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| $500 | We may charge you $500 if your business | ||
| is not in compliance with our system | |||
| specifications or the franchise agreement | |||
| and you fail to correct the non-compliance | |||
| after 30 days’ notice. Thereafter, we may | |||
| charge you $250 per week until you | |||
| correct such non-compliance. | |||
| 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. |
Source: Item 6 — OTHER FEES (FDD pages 9–13)
What This Means (2024 FDD)
According to the 2024 Bombs Away Franchise Disclosure Document, if a franchisee's business is not in compliance with system specifications or the franchise agreement, Bombs Away may charge the franchisee $500 if the non-compliance is not corrected within 30 days of notice. After the initial 30-day period, Bombs Away can charge $250 per week until the non-compliance is corrected.
Additionally, Bombs Away has the right to conduct an in-person evaluation of a franchisee's business due to non-compliance with any system specification. If this occurs, the franchisee is responsible for paying $600, plus Bombs Away's out-of-pocket costs for the evaluation. Bombs Away also has the option to correct the non-compliance on behalf of the franchisee. If Bombs Away chooses to do this, the franchisee will owe Bombs Away the costs incurred, plus a 10% administrative fee.
These fees and potential actions highlight the importance of adhering to Bombs Away's system standards and the franchise agreement. Franchisees should ensure they understand and comply with all requirements to avoid these additional costs and potential interventions by the franchisor. It is also important to note that all fees are payable to Bombs Away, other than software subscription charges, and are generally nonrefundable.