If I sell my Bombs Away franchise, what other costs besides the $7,500 fee might I incur?
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 our | |||
| costs plus a 10% administrative fee. | |||
| $7,500 plus any | Payable if you sell your business. | ||
| broker fees and other | |||
| out-of-pocket costs | |||
| we incur | |||
| An amount equal to | |||
| royalty fees and | |||
| marketing fund | |||
| contributions for the | |||
| lesser of (i) 2 years | |||
| or (ii) the remaining | |||
| weeks of the | |||
| franchise term. | |||
| Our costs and losses | You must indemnify and defend (with | ||
| from any legal | counsel reasonably acceptable to us) us | ||
| action related to the | and our affiliates against all losses in any | ||
| operation of your | action by or against us related to, or | ||
| franchise | alleged to arise out of, the operation of | ||
| your franchise (unless caused by our | |||
| misconduct or negligence). | |||
| Our attorney fees, | In any legal proceeding (including | ||
| court costs, and | arbitration), the losing party must pay the | ||
| other expenses of a | prevailing party’s attorney fees, court | ||
| legal proceeding, if | costs and other expenses. | ||
| we are the prevailing | |||
| party |
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 sell your franchise, you will be responsible for a $7,500 fee, as well as any broker fees and out-of-pocket costs that Bombs Away incurs during the sale. Additionally, you may have to pay an amount equal to the royalty fees and marketing fund contributions for either two years or the remaining weeks of the franchise term, whichever is less.
Beyond these direct costs associated with the sale, you could also be responsible for other potential expenses. For example, if there are any legal actions related to the operation of your franchise, you would need to cover Bombs Away's costs and losses, including legal representation, unless the legal action was caused by Bombs Away's misconduct or negligence. Similarly, if Bombs Away prevails in any legal proceeding, including arbitration, you may be required to cover their attorney fees, court costs, and other related expenses.
It is important to note that these additional costs are contingent on specific circumstances, such as the involvement of legal disputes or the remaining term of your franchise agreement. As such, prospective franchisees should carefully review the franchise agreement and consider these potential costs when planning for the sale of their Bombs Away franchise.