Does Bombs Away require franchisees to use designated third-party vendors and suppliers?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Fee | Amount | Due Date | Remarks | ||
|---|---|---|---|---|---|
| Pass-through of | Varies | We have the right to require franchisees to | |||
| costs, plus | use third-party vendors and suppliers that | ||||
| reasonable | we designate. Examples can include | ||||
| administrative | computer support vendors, mystery | ||||
| charge. Currently, | shopping, and customer feedback systems. | ||||
| none. | The vendors and suppliers may bill | ||||
| franchisees directly, or we have the right | |||||
| to collect payment for these vendors | |||||
| together with a reasonable markup or | |||||
| charge for administering the payment | |||||
| program. | |||||
| Currently, $30-$100 | We require you to use certain software as | ||||
| per staff member, | described in Item 11. You pay | ||||
| per month; also | subscription/technology fees directly to | ||||
| fees paid to | us. | ||||
| suppliers: $35 up to | |||||
| 5 vehicles per month | |||||
| or $8/vehicle/mo for | |||||
| GPS tracking, | |||||
| $25/month for single | |||||
| user for phone | |||||
| system paid; $25 per | |||||
| background check; | |||||
| $25/month | |||||
| Quickbooks Online; | |||||
| optional payroll | |||||
| supplier fee | |||||
| $80based on | |||||
| number of | |||||
| employees |
Source: Item 6 — OTHER FEES (FDD pages 9–13)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, Bombs Away retains the right to mandate that franchisees utilize specific third-party vendors and suppliers. These could include vendors for computer support, mystery shopping services, and customer feedback systems.
Bombs Away franchisees may be billed directly by these designated vendors and suppliers. Alternatively, Bombs Away has the option to collect payments from franchisees for these services, potentially adding a reasonable markup or administrative charge for managing the payment program.
Currently, franchisees are required to use certain software and pay subscription/technology fees directly to Bombs Away. Additionally, franchisees face other fees paid to suppliers, such as $35 up to 5 vehicles per month or $8 per vehicle per month for GPS tracking, $25 per month for a single user for a phone system, $25 per background check, and $25 per month for Quickbooks Online, with an optional payroll supplier fee of $80 based on the number of employees. It is important for prospective franchisees to understand these potential requirements and associated costs, as they can impact the overall financial performance of their Bombs Away franchise.