When is payment due for insurance for a Bombs Away franchise?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of expenditure | An | ount | Method of payment | When due | To whom payment is to be made | |
|---|---|---|---|---|---|---|
| Initial franchise fee (see Note 1) | $30,000 | - | $30,000 | Check or wire transfer | Upon signing the franchise agreement | Us |
| Rent, Utilities, and | $0 | - | $3,000 | Not applicable | Not applicable | Not applicable |
| Leasehold | ||||||
| Improvements (see Note | ||||||
| 2) | ||||||
| Market Introduction | $10,000 | - | $15,000 | Check, debit, and/or credit | As incurred or when billed | Vendors and suppliers |
| Program | ||||||
| Furniture, Fixtures, and Equipment | $100 | - | $500 | Check, debit, and/or credit | As incurred | Vendors and suppliers |
| Computer Systems | $1,000 | - | $3,500 | Check, debit, and/or credit | As incurred | Vendors and suppliers |
| Insurance | $500 | - | $3,500 | Check | Upon ordering | I |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 13–15)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, payment for insurance is due upon ordering. The estimated cost for insurance ranges from $500 to $3,500, and payment should be made via check to the insurance company.
This means that a Bombs Away franchisee needs to budget for this expense and have funds available when securing their insurance coverage. It's important to obtain quotes from different insurance providers to find the most suitable and cost-effective policy.
Franchisees should confirm with Bombs Away which insurance coverages are required and whether the franchisor has any preferred insurance providers. Understanding the specific insurance requirements is crucial to ensure compliance and adequate protection for the business.