What markup does Bombs Away charge if they collect payment for vendors?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Pass-through of | Varies | We have the right to require franchisees to | |
| costs, plus | use third-party vendors and suppliers that | ||
| reasonable | we designate. Examples can include | ||
| administrative | computer support vendors, mystery | ||
| charge. Currently, | shopping, and customer feedback systems. | ||
| none. | The vendors and suppliers may bill | ||
| franchisees directly, or we have the right | |||
| to collect payment for these vendors | |||
| together with a reasonable markup or | |||
| charge for administering the payment | |||
| program. |
Source: Item 6 — OTHER FEES (FDD pages 9–13)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, Bombs Away has the right to collect payments for third-party vendors used by franchisees. These vendors can include computer support, mystery shopping, and customer feedback systems.
If Bombs Away chooses to collect payments on behalf of these vendors, they may add a reasonable markup or charge for administering the payment program. Currently, the FDD states that the amount of this administrative charge is none.
This means that while Bombs Away reserves the right to add a markup in the future, they are not currently charging franchisees any additional fees for collecting vendor payments. It is important for prospective franchisees to note that this policy could change, and they should confirm the current markup policy with Bombs Away before signing the franchise agreement.