When is the Market Cooperative Contribution due for a Bombs Away franchise?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Market Cooperative Contribution | As determined by co-op. Currently, none. | Monthly, on the 2nd day of the following month | We have the right to establish local or regional advertising cooperatives. The maximum contribution that a co-op may require is 5% of gross sales. |
Source: Item 6 — OTHER FEES (FDD pages 9–13)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, the Market Cooperative Contribution is due monthly, on the 2nd day of the following month. Currently, the amount of this contribution is determined by the cooperative, but is currently set at none. Bombs Away retains the right to establish local or regional advertising cooperatives, and the maximum contribution that a co-op may require is 5% of gross sales.
This means that while there is no current Market Cooperative Contribution, Bombs Away franchisees need to be aware that this could change. If a co-op is established, franchisees will be required to contribute, with the amount determined by the co-op, up to a maximum of 5% of their gross sales. This contribution would then be due monthly, on the 2nd day of the following month.
Franchisees should factor in the potential for this additional expense when considering the financial viability of a Bombs Away franchise. It is important to stay informed about any decisions regarding the establishment of marketing cooperatives and the associated contribution amounts to properly manage their business finances.