Who owns the Bombs Away business used in the financial performance representation?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
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1/01/2023 – 12/31/2023 Financial Results
The following chart contains the January 1st, 2023 to December 31st, 2023 financial performance information for the Bombs Away! business owned by our affiliate that was open for this time period. This location is in California.
Gross Sales: $419,423
Estimated Royalty Fees: $33,554 Estimated Marketing Fund: $8,389
Notes:
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- The foregoing information shows historical financial performance.
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- There was a total of one Bombs Away! business open for this time frame which is owned by our Affiliate.
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- "Gross Sales" means total of all collected revenue in a period, not including discounts, taxes, tips/gratuity or voids.
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- The financial performance representation does not reflect the costs of sales, operating expenses, or other costs or expenses that must be deducted from the gross revenue or gross sales figures to obtain your net income or profit. You should conduct an independent investigation of the costs and expenses you will incur in operating your Bombs Away business. Franchisees or former franchisees, listed in Item 20 of this Franchise Disclosure Document, may be one source of this information.
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- "Royalty/Marketing Fees" reflect the 8% royalty plus the 2% System Marketing Contribution that these outlets would have paid if they were franchised.
**Some outlets have sold these amounts. Your individual result
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 31–33)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, the financial performance representation provided in Item 19 is based on the performance of a Bombs Away business owned by an affiliate of the franchisor. The financial results cover the period from January 1, 2023, to December 31, 2023, for a single location in California. This is important for prospective franchisees to understand, as the performance of this affiliate-owned location may not be representative of what a franchisee-owned location might achieve.
The FDD emphasizes that the financial performance representation includes only gross sales, estimated royalty fees, and estimated marketing fund contributions. It explicitly states that the representation does not reflect costs of sales, operating expenses, or other costs that would be deducted to determine net income or profit. Bombs Away encourages prospective franchisees to conduct their own independent investigation of all costs and expenses they are likely to incur while operating a Bombs Away business.
Prospective franchisees should also note that the FDD includes a disclaimer stating that individual results may vary and there is no assurance that a franchisee will achieve the same sales levels as the affiliate-owned location. Given that the financial performance representation is based on a single location owned by an affiliate, it is crucial for potential franchisees to conduct thorough due diligence, including speaking with current and former franchisees (listed in Item 20 of the FDD), to gain a more comprehensive understanding of the potential financial performance of a Bombs Away franchise.