Can the Bombs Away initial franchise fee be paid in installments?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
- 4.1 Initial Franchise Fee. Upon signing this Agreement, Franchisee shall pay an initial franchise fee in the amount stated on the Summary Page. This initial franchise fee is not refundable.
- 4.2 Royalty Fee. Franchisee shall pay Bombs Away Franchising a monthly royalty fee (the "Royalty Fee") equal to 8% of Gross Sales. The Royalty Fee for any given month is due on the 2nd day of the following month.
Source: Item 5 — INITIAL FEES (FDD page 9)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, the initial franchise fee is due upon signing the franchise agreement. Specifically, Article 4.1 states that the franchisee "shall pay an initial franchise fee in the amount stated on the Summary Page." The agreement does not explicitly state whether the initial franchise fee can be paid in installments.
However, Article 4.7 outlines the payment terms for other fees such as the Royalty Fee and Marketing Fund Contribution, indicating that these are typically paid via pre-authorized bank draft or another method required by Bombs Away. This section does not mention any installment options for the initial franchise fee.
In the absence of explicit information about installment payments for the initial franchise fee, prospective franchisees should directly inquire with Bombs Away about potential alternative payment arrangements or financing options for the initial franchise fee. It is important to clarify this point before signing the franchise agreement to ensure financial readiness.