What does the low-end vehicle estimate for a Bombs Away franchise assume?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
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- You must use a vehicle appropriate for your business with our branded logo/wrap. We strongly recommend a midsize pickup truck, white in color, such as a Toyota Tundra or Nissan Frontier. It must be in excellent or better condition, clean, dent-free, and otherwise presenting a professional appearance. The low-end estimate assumes you already have a personal vehicle for the business. The high assumes you lease a new vehicle, with certain fees and costs payable upon signing the lease.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 13–15)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, the low-end vehicle estimate of $0 assumes that the franchisee already has a personal vehicle suitable for business use. Bombs Away requires franchisees to use a vehicle with the company's branded logo/wrap. They strongly recommend a white, midsize pickup truck, such as a Toyota Tundra or Nissan Frontier, in excellent condition, clean, dent-free, and presenting a professional appearance.
This is a notable factor for prospective franchisees to consider. If they do not already own a suitable vehicle, they will need to factor in the cost of purchasing or leasing one, which could significantly increase their initial investment. The high-end vehicle estimate is $30,000, which assumes the franchisee leases a new vehicle, with certain fees and costs payable upon signing the lease.
It is important for potential Bombs Away franchisees to assess their current vehicle situation and budget accordingly. If a new vehicle is required, they should research the costs of purchasing or leasing a vehicle that meets Bombs Away's standards and incorporate those costs into their financial projections. This could involve a substantial upfront investment or ongoing lease payments, impacting the overall profitability of the franchise.