When is the Marketing Fund Contribution paid to Bombs Away Franchising?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
fee (the "Royalty Fee") equal to 8% of Gross Sales. The Royalty Fee for any given month is due on the 2nd day of the following month.
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.
- 4.4 Replacement / Additional Training Fee. If Franchisee sends an employee to Bombs Away Franchising's training program after opening, Bombs Away Franchising 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-compliance fee is in addition to all of Bombs Away Franchising's other rights and remedies (including default and termination under Section 14.2).
- **4.
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, unless Bombs Away determines a lesser amount.
The franchisee must report monthly Gross Sales to Bombs Away by the 2nd day of the following month. If the franchisee fails to report monthly Gross Sales, Bombs Away may withdraw estimated Royalty Fees and Marketing Fund Contributions equal to 125% of the last Gross Sales reported. After the franchisee reports Gross Sales, the parties will reconcile the actual fees.
Payments to Bombs Away for the Royalty Fee, Marketing Fund Contribution, and any other amounts owed must be made via pre-authorized bank draft or in another manner as Bombs Away may require. If a payment is not made on time, Bombs Away will charge 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).