What is the initial non-compliance fee that Bombs Away Franchising may charge?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
may charge its then-current training fee. As of the date of this Agreement, the training fee is $350 per day.
- 4.5 Non-Compliance Fee. Bombs Away Franchising may charge Franchisee $500 for any instance of non-compliance with the System Standards or this Agreement (other than Franchisee's non-payment of a fee owed to Bombs Away Franchising) which Franchisee fails to cure after 30 days' notice. Thereafter, Bombs Away Franchising may charge Franchisee $250 per week until Franchisee ceases such non-compliance. This fee is a reasonable estimate of Bombs Away Franchising's internal cost of personnel time attributable to addressing the non-compliance, and it is not a penalty or estimate of all damages arising from Franchisee's breach. The non-compl
Source: Item 22 — CONTRACTS (FDD pages 35–36)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, Bombs Away Franchising may charge a franchisee $500 for any instance of non-compliance with the System Standards or the Franchise Agreement. This fee applies if the franchisee fails to correct the non-compliance within 30 days after receiving notice.
In addition to the initial $500 fee, Bombs Away Franchising may also charge $250 per week if the non-compliance continues beyond the initial 30-day cure period. This weekly fee will be charged until the franchisee ceases the non-compliant behavior.
The FDD specifies that these fees are considered a reasonable estimate of Bombs Away Franchising's internal costs related to addressing the non-compliance and are not considered a penalty or a comprehensive estimate of all potential damages resulting from the franchisee's breach. Furthermore, these non-compliance fees are in addition to any other rights and remedies that Bombs Away Franchising may have, including default and termination of the franchise agreement.