Where do the funds go if a Bombs Away Market Cooperative is terminated?

According to Bombs Away's 2024 Franchise Disclosure Document, if a Market Cooperative is terminated, any remaining funds will be transferred to the Marketing Fund. This means that franchisees who contribute to a Market Cooperative could see their contributions redirected to the Marketing Fund if the cooperative is terminated by Bombs Away.

The Marketing Fund is used for various marketing and advertising activities as determined by Bombs Away. These activities can include advertising, promotions, sponsorships, website development, social media, market research, and other related expenses. Bombs Away has sole discretion over how the Marketing Fund is spent, and expenditures do not need to be proportionate to individual franchisee contributions or provide direct benefits to each franchisee.

This arrangement gives Bombs Away significant control over marketing funds, even those initially intended for regional or local efforts through the Market Cooperative. While franchisees contribute to both the Marketing Fund (2% of Gross Sales) and potentially a Market Cooperative (between 1% and 5% of Gross Sales), the franchisor ultimately decides how these funds are allocated and spent, especially if a Market Cooperative is terminated.