How might Bombs Away franchisees pay for third-party vendors and suppliers?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
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| 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. |
Source: Item 6 — OTHER FEES (FDD pages 9–13)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, franchisees may encounter costs related to third-party vendors and suppliers. Bombs Away retains the right to mandate the use of specific third-party vendors and suppliers for services such as computer support, mystery shopping, and customer feedback systems.
Franchisees might be billed directly by these vendors and suppliers. Alternatively, Bombs Away has the option to collect payments from franchisees for these vendor services, potentially adding a reasonable markup or administrative charge. The FDD specifies some current fees paid to suppliers, such as GPS tracking ($35 up to 5 vehicles per month or $8 per vehicle per month), phone system ($25 per month for a single user), background checks ($25 each), and QuickBooks Online ($25 per month). There is also an optional payroll supplier fee of $80, based on the number of employees.
It is important to note that all fees, other than software subscription charges, are payable to Bombs Away. Bombs Away also states that if they pay any amount that a franchisee owes to a third party, the franchisee must reimburse Bombs Away, plus a 10% administrative fee. This arrangement gives Bombs Away some flexibility in managing vendor relationships and ensuring compliance across all franchise locations, but it also means franchisees need to be prepared for these potential pass-through costs.