If Bombs Away Franchising cures a default, does the reimbursement from the franchisee include the allocation of any internal costs?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
If Franchisee breaches or defaults under any provision of this Agreement, Bombs Away Franchising may (but has no obligation to) take any action to cure the default on behalf of Franchisee, without any liability to Franchisee.
Franchisee shall reimburse Bombs Away Franchising for its costs and expenses (including the allocation of any internal costs) for such action, plus 10% as an administrative fee.
Source: Item 22 — CONTRACTS (FDD pages 35–36)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, if a franchisee defaults on any provision of the Franchise Agreement, Bombs Away has the option to take action to correct the default on the franchisee's behalf, without incurring any liability.
If Bombs Away chooses to cure a default, the franchisee is responsible for reimbursing Bombs Away for all associated costs and expenses. This reimbursement explicitly includes the allocation of any internal costs Bombs Away incurs while curing the default.
In addition to covering the costs and expenses, Bombs Away also charges the franchisee an administrative fee of 10% on top of the reimbursement amount. This means that the franchisee will have to pay for the costs Bombs Away incurs to cure the default, plus an additional 10% of that amount as an administrative fee.