For Bombs Away franchisees, what does the pass-through of costs with reasonable administrative charge cover?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| 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, the pass-through costs with a reasonable administrative charge relate to instances where Bombs Away requires franchisees to use designated third-party vendors and suppliers. These vendors can include computer support, mystery shopping, and customer feedback systems.
Bombs Away has the option to either have these vendors bill the franchisee directly or to collect payments from the franchisee on behalf of the vendors. If Bombs Away collects the payments, they may include a reasonable markup or charge for administering the payment program. Currently, the FDD does not list any specific pass-through costs.
This means that as a Bombs Away franchisee, you may incur additional costs for services or products mandated by the franchisor, and Bombs Away may add an administrative fee to those costs if they handle the payments. It is important for prospective franchisees to understand which vendors are mandatory and what these costs might be to factor them into their financial projections.