What is the range for the estimated initial investment for a Bombs Away franchise?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
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| Type of expenditure | Amou | nt | Method of payment | When due | To whom payment is to be made |
|---|---|---|---|---|---|
| Inventory | $500 - | $1,000 | Check, debit, and/or credit | Upon ordering | Vendors |
| Licenses and Permits | $100 - | $500 | Check | Upon application | Government |
| Dues and Subscriptions | $40 - | $500 | Check, debit, and/or credit | As incurred | Vendors, trade organizations |
| Professional Fees | $1,500 - | $3,000 | Check, debit, and/or credit | As incurred or when billed | Professional service firms |
| (lawyer, accountant, | |||||
| etc.) | |||||
| Travel, lodging and meals for initial training | $2,000 - | $5,000 | Cash, debit or credit | As incurred | Airlines, hotels, and restaurants |
| Additional funds (for first 3 months) (see Note 3) | $5,000 - | $15,000 | Varies | Varies | Employees, suppliers |
| Total | $51,740 - | $113,000 |
Notes
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- None of the expenditures in this table will be refundable. Neither we nor any affiliate finances any part of your initial investment.
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- We estimate real property, leasehold improvements, and utilities at zero because we expect you will open as a home-based business.
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- You must use a vehicle appropriate for your business with our branded logo/wrap. We strongly recommend a midsize pickup truck, white in color, such as a Toyota Tundra or Nissan Frontier. It must be in excellent or better condition, clean, dent-free, and otherwise presenting a professional appearance. The low-end estimate assumes you already have a personal vehicle for the business. The high assumes you lease a new vehicle, with certain fees and costs payable upon signing the lease.
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- This includes any other required expenses you will incur before operations begin and during the initial period of operations, such as payroll, additional inventory, and other operating expenses in excess of income generated by the business. It does not include any salary or compensation for you. In formulating the amount required for additional funds, we relied on the following factors, basis, and experience: the development of a Bombs Away business by our affiliate, and our general knowledge of the industry.
Item 8 RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES
Generally
We have the right to require you to purchase or lease all goods, services, supplies, fixtures, equipment, inventory, computer hardware and software, real estate, or comparable items related to establishing or operating your business (1) either from us or our designee, or from suppliers approved by us, or (2) according to our specifications.
Specific Obligations
The following are our current specific obligations for purchases and leases:
- A. Insurance.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 13–15)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, the estimated initial investment to begin operations ranges from $51,740 to $113,000. This total includes several key expenditures that a new franchisee will need to cover.
The initial franchise fee is a fixed cost of $30,000, payable upon signing the franchise agreement. Other significant costs include the Market Introduction Program, estimated between $10,000 and $15,000, and a vehicle, which could cost up to $30,000 if leasing a new one. Additional expenses cover items such as furniture, fixtures, equipment ($100 to $500), computer systems ($1,000 to $3,500), insurance ($500 to $3,500), and signage ($1,000 to $2,500).
Further, the initial investment also accounts for inventory ($500 to $1,000), licenses and permits ($100 to $500), dues and subscriptions ($40 to $500), professional fees ($1,500 to $3,000), and travel, lodging, and meals for initial training ($2,000 to $5,000). A crucial component is the additional funds allocated for the first 3 months of operation, ranging from $5,000 to $15,000, intended to cover payroll, inventory, and other operating expenses exceeding the income generated during this initial period. Note that the estimate does not include any salary or compensation for the franchisee.
Prospective Bombs Away franchisees should carefully review each of these estimated costs and consider their own financial circumstances to ensure they have sufficient capital to launch and sustain their business during the initial months. It is also important to note that these expenditures are non-refundable.