When is the Marketing Fund Contribution paid by a Bombs Away franchisee?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
4.3 Marketing Fund Contribution.
- (a) Marketing Fund Contribution. Franchisee shall pay Bombs Away Franchising a contribution to the Marketing Fund (the "Marketing Fund Contribution") equal to 2% of Franchisee's Gross Sales (or such lesser amount as Bombs Away Franchising determines), at the same time as the Royalty Fee.
- (b) Market Cooperative Contribution. If the Business participates in a Market Cooperative, then Franchisee shall contribute to the Market Cooperative a percentage of Gross Sales (or other amount) determined by the Market Cooperative.
Source: Item 22 — CONTRACTS (FDD pages 35–36)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, the franchisee is required to pay the Marketing Fund Contribution at the same time as the Royalty Fee. The Marketing Fund Contribution is equal to 2% of the franchisee's Gross Sales, although Bombs Away has the discretion to determine a lesser amount.
Franchisees must report their monthly Gross Sales to Bombs Away by the 2nd day of the following month. If a franchisee fails to report their monthly Gross Sales, Bombs Away may withdraw estimated Royalty Fees and Marketing Fund Contributions equal to 125% of the last Gross Sales reported. Bombs Away also has the right to remotely access the franchisee's point-of-sale system to calculate Gross Sales.
The Royalty Fee, Marketing Fund Contribution, and any other amounts owed to Bombs Away must be paid via pre-authorized bank draft or in another manner required by Bombs Away. If a payment is not made on time, the franchisee will incur a $100 late fee, plus interest on the unpaid amount at a rate of 18% per year (or the highest rate allowed by law, if lower). Additionally, Bombs Away may charge $30 for any payment returned due to insufficient funds (or the maximum fee allowed by law, if lower).