What should a prospective Bombs Away franchisee do to investigate the costs and expenses of operating the business?

According to Bombs Away's 2024 Franchise Disclosure Document, a prospective franchisee should conduct an independent investigation of the costs and expenses they will incur while operating their Bombs Away business. The FDD indicates that current and former franchisees, who are listed in Item 20 of the document, may be a source of this information.

Item 19 of the Bombs Away FDD includes financial performance representations based on data from January 1, 2023, to December 31, 2023, for a Bombs Away business owned by an affiliate in California. The gross sales for this location were $419,423, with estimated royalty fees of $33,554 and marketing fund fees of $8,389. However, the FDD explicitly states that these figures do not reflect the costs of sales, operating expenses, or other costs that must be deducted to determine net income or profit. Therefore, these numbers should not be taken as a complete picture of potential profitability.

Prospective Bombs Away franchisees should reach out to current and former franchisees to gain insights into the typical expenses associated with running the business. They should also consider factors such as location, market conditions, and their own management capabilities, as these can significantly impact financial performance. By conducting thorough due diligence, potential franchisees can make informed decisions about their investment in a Bombs Away franchise.