If Bombs Away cures my non-compliance, what additional fee will I owe besides their costs?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Currently $600, plus | On demand | Payable only if we conduct an in-person | |
| our out-of-pocket | evaluation of your business because of a | ||
| costs | governmental report, customer complaint | ||
| or other customer feedback, or your | |||
| default or non-compliance with any | |||
| system specification. | |||
| We may cure your non-compliance on | |||
| your behalf (for example, if you do not | |||
| have required insurance, we may purchase | |||
| insurance for you), and you will owe |
Source: Item 6 — OTHER FEES (FDD pages 9–13)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, if you are non-compliant with the franchise agreement and Bombs Away cures the non-compliance on your behalf, you will owe their costs plus a 10% administrative fee. For example, if you do not have the required insurance, Bombs Away may purchase it for you. You would then be responsible for reimbursing Bombs Away for the cost of the insurance policy, in addition to a 10% administrative fee on that cost.
This policy is fairly standard in franchising, as it protects the brand's reputation and ensures all franchisees meet minimum operating standards. The 10% administrative fee is meant to compensate Bombs Away for the time and effort spent rectifying your non-compliance.
As a prospective franchisee, it is important to maintain compliance with all aspects of the franchise agreement to avoid incurring these additional costs. You should clarify with Bombs Away what specific actions constitute non-compliance and what steps you can take to prevent it.