To whom do Bombs Away franchisees pay subscription/technology fees?
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. | |||||
| Currently, $30-$100 | We require you to use certain software as | ||||
| per staff member, | described in Item 11. You pay | ||||
| per month; also | subscription/technology fees directly to | ||||
| fees paid to | us. | ||||
| suppliers: $35 up to | |||||
| 5 vehicles per month | |||||
| or $8/vehicle/mo for | |||||
| GPS tracking, | |||||
| $25/month for single | |||||
| user for phone | |||||
| system paid; $25 per | |||||
| background check; | |||||
| $25/month | |||||
| Quickbooks Online; | |||||
| optional payroll | |||||
| supplier fee | |||||
| $80based on | |||||
| number of | |||||
| employees | |||||
| $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. |
Source: Item 6 — OTHER FEES (FDD pages 9–13)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, franchisees pay subscription/technology fees directly to Bombs Away. The FDD specifies that franchisees are required to use certain software, as detailed in Item 11, and the subscription/technology fees for this software are paid directly to Bombs Away.
However, Bombs Away franchisees may also be required to use third-party vendors and suppliers for services such as computer support, mystery shopping, and customer feedback systems. In these instances, the vendors and suppliers may bill the franchisees directly. Alternatively, Bombs Away retains the right to collect payments for these vendors, potentially including a reasonable markup or charge for administering the payment program.
In general, the FDD states that all fees are payable only to Bombs Away, with the exception of software subscription charges. It also clarifies that all fees are imposed and collected by Bombs Away, again with the exception of software subscription charges. This indicates that while some software subscriptions are paid directly to Bombs Away, others may be paid to third-party vendors. Franchisees should clarify with Bombs Away which software subscriptions are paid to the franchisor and which are paid to third-party vendors.