What is the Bombs Away franchisee's obligation regarding reporting monthly Gross Sales?

According to Bombs Away's 2024 Franchise Disclosure Document, franchisees are required to report their monthly Gross Sales to Bombs Away Franchising by the 2nd day of the following month. This is a crucial obligation, as it directly impacts the calculation of Royalty Fees and Marketing Fund Contributions. If a franchisee fails to report their monthly Gross Sales on time, Bombs Away Franchising has the right to withdraw estimated Royalty Fees and Marketing Fund Contributions equal to 125% of the last Gross Sales reported. After the franchisee reports the actual Gross Sales, the parties will then reconcile the actual fees owed.

Bombs Away also has the right to remotely access the franchisee's point-of-sale system to calculate Gross Sales. This access allows Bombs Away to independently verify the sales figures reported by the franchisee and ensure accurate calculation of fees. This is a standard practice in franchising, as it provides the franchisor with a mechanism to ensure compliance and transparency in financial reporting.

Franchisees must adhere to Bombs Away's specified methods of payment, which include pre-authorized bank drafts or other methods as required by Bombs Away. Failure to make timely payments can result in a $100 late fee, plus interest on the unpaid amount at a rate of 18% per year (or the highest rate allowed by law). Additionally, Bombs Away may charge a $30 fee for any payment returned due to insufficient funds (or the maximum fee allowed by law).