What is the initial non-compliance fee charged by Bombs Away?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Fee | Amount | Due Date | Remarks | ||
|---|---|---|---|---|---|
| Pass-through of | Varies | We have the right to require franchisees to | |||
| costs, plus | use third-party vendors and suppliers that | ||||
| reasonable | we designate. Examples can include | ||||
| administrative | computer support vendors, mystery | ||||
| charge. Currently, | shopping, and customer feedback systems. | ||||
| none. | The vendors and suppliers may bill | ||||
| franchisees directly, or we have the right | |||||
| to collect payment for these vendors | |||||
| together with a reasonable markup or | |||||
| charge for administering the payment | |||||
| program. | |||||
| Currently, $30-$100 | We require you to use certain software as | ||||
| per staff member, | described in Item 11. You pay | ||||
| per month; also | subscription/technology fees directly to | ||||
| fees paid to | us. | ||||
| suppliers: $35 up to | |||||
| 5 vehicles per month | |||||
| or $8/vehicle/mo for | |||||
| GPS tracking, | |||||
| $25/month for single | |||||
| user for phone | |||||
| system paid; $25 per | |||||
| background check; | |||||
| $25/month | |||||
| Quickbooks Online; | |||||
| optional payroll | |||||
| supplier fee | |||||
| $80based on | |||||
| number of | |||||
| employees | |||||
| $500 | We may charge you $500 if your business | ||||
| is not in compliance with our system | |||||
| specifications or the franchise agreement | |||||
| and you fail to correct the non-compliance | |||||
| after 30 days’ notice. Thereafter, we may | |||||
| charge you $250 per week until you | |||||
| correct such non-compliance. |
Source: Item 6 — OTHER FEES (FDD pages 9–13)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, the initial non-compliance fee is $500. Bombs Away may charge this fee if a franchisee's business is not in compliance with the system specifications or the franchise agreement.
The franchisee will be given 30 days' notice to correct the non-compliance. If the issues are not resolved within that timeframe, Bombs Away has the right to impose the $500 fee.
Furthermore, if the non-compliance continues after the initial fee, Bombs Away may charge an additional $250 per week until the franchisee rectifies the situation. This escalating fee structure is designed to incentivize franchisees to promptly address and resolve any compliance issues to avoid accumulating further charges. Franchisees should ensure they understand and adhere to all system specifications and franchise agreement terms to avoid these fees.