Is Bombs Away Franchising obligated to have all Bombs Away businesses contribute to the Marketing Fund?

According to Bombs Away's 2024 Franchise Disclosure Document, Bombs Away Franchising is not obligated to ensure that all Bombs Away businesses contribute to the Marketing Fund. This includes businesses owned by other franchisees, Bombs Away Franchising itself, or its affiliates. Furthermore, Bombs Away Franchising is not required to ensure that all contributing Bombs Away businesses contribute the same amount or at the same rate as any individual franchisee.

This policy provides Bombs Away Franchising with flexibility in managing the Marketing Fund. Bombs Away Franchising can strategically decide which businesses should contribute and at what level. This might depend on factors like the location, performance, or specific marketing needs of different Bombs Away outlets.

For a prospective franchisee, this means that while they are required to contribute to the Marketing Fund, other Bombs Away businesses may not be held to the same standard. This could lead to perceived inequities in the distribution of marketing resources or benefits. It is important for franchisees to understand that the Marketing Fund will be spent at Bombs Away Franchising's sole discretion, and Bombs Away Franchising has no fiduciary duty with regard to the Marketing Fund.

Franchisees may want to inquire about the criteria Bombs Away Franchising uses to determine which businesses contribute to the Marketing Fund and at what rate. Understanding this policy can help franchisees better assess the potential benefits and limitations of the Marketing Fund and how it may impact their individual business.