Does Bombs Away require franchisees to lease any equipment or property?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
DUCTS 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. You must obtain insurance as described in the Franchise Agreement and in our Manual, which includes (i) Commercial General Liability insurance, including products liability coverage, and broad form commercial liability coverage, written on an "occurrence" policy form in an amount of not less than $1,000,000 single limit per occurrence and $2,000,000 aggregate limit, (ii) Business Automobile Liability insurance including owned, leased, non-owned and hired automobiles coverage in an amount of not less than $1,000,000, and (iii) Workers Compensation coverage as required by state law. Your policies (other than Workers Compensation) must list us and our affiliates as an additional insured, must include a waiver of subrogation in favor of us and our affiliates, must be primary and non-contributing with any insurance carried by us or our affiliates, and must stipulate that we receive 30 days' prior written notice of cancellation.
- B. Computer software and hardware. You must purchase and use the computer software and hardware that we specify. See Item 11 for more details.
- C. Products, supplies and inventory. You must purchase the customized litter box covers for the Van Ness® CP2 large litter from our affiliate. All other required products, supplies and/or inventory will be purchased from our approved vendors.
- D. CRM Management. You must use our CRM Management administrative services. You will purchase the CRM Management administrative services from our approved supplier.
- E. Vehicle. 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 upo
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 15–17)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, franchisees have specific obligations for purchases and leases. Bombs Away generally has the right to require franchisees 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 their business either from Bombs Away or its designee, or from approved suppliers, or according to Bombs Away's specifications.
Specifically, franchisees must use a vehicle appropriate for their business with Bombs Away's branded logo/wrap. While Bombs Away strongly recommends a midsize pickup truck, white in color, such as a Toyota Tundra or Nissan Frontier, the FDD indicates that the high-end estimate for this requirement assumes the franchisee leases a new vehicle, with certain fees and costs payable upon signing the lease. The low-end estimate assumes the franchisee already has a personal vehicle for the business. Franchisees must also purchase and use the computer software and hardware that Bombs Away specifies.
Additionally, franchisees must obtain certain types of insurance, including Commercial General Liability insurance (not less than $1,000,000 single limit per occurrence and $2,000,000 aggregate limit), Business Automobile Liability insurance (not less than $1,000,000), and Workers Compensation coverage as required by state law. These policies, excluding Workers Compensation, must list Bombs Away and its affiliates as additional insured, include a waiver of subrogation, be primary and non-contributing with any insurance carried by Bombs Away or its affiliates, and stipulate that Bombs Away receive 30 days' prior written notice of cancellation. Franchisees must also purchase the customized litter box covers for the Van Ness® CP2 large litter from Bombs Away's affiliate and use Bombs Away's CRM Management administrative services from their approved supplier.