When is the Marketing Fund contribution due for a Bombs Away franchise?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
tem 6 OTHER FEES**
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Royalty | 6-8% of your gross sales | Monthly, on the 2nd day of the following month | We offer two options, a franchise fee of $15,000 with an 8% royalty fee or a franchise fee of $25,000 with a 6% Royalty Fee. See Note 1 and Note 2. |
Source: Item 6 — OTHER FEES (FDD pages 9–13)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, the Marketing Fund contribution is due monthly, specifically on the 2nd day of the following month. This contribution is calculated as 2% of the franchisee's gross sales.
This means that a Bombs Away franchisee must calculate their gross sales for each month and remit 2% of that amount to the Marketing Fund by the second day of the subsequent month. For example, sales generated in January are subject to the 2% marketing fund contribution, which must be paid by February 2nd.
Franchisors typically use marketing fund contributions to promote the brand, conduct market research, and develop advertising campaigns. Paying this fee on time is essential for Bombs Away franchisees to remain in good standing with the franchisor and avoid potential late fees or penalties.