Who is responsible for repaying the costs incurred by Bombs Away Franchising in attempting to collect payments owed by a franchisee?

According to Bombs Away's 2024 Franchise Disclosure Document, the franchisee is responsible for repaying any costs Bombs Away incurs while trying to collect payments the franchisee owes. This includes reasonable attorney fees. Bombs Away can determine how to apply any payment received from the franchisee, regardless of any designation made by the franchisee.

This means that if a Bombs Away franchisee fails to make timely payments, they will be responsible for covering not only the original amount owed but also any additional expenses Bombs Away incurs in the collection process. This could include legal fees if Bombs Away has to take legal action to recover the funds. The franchisee does not have the ability to restrict how Bombs Away applies payments.

This is a fairly standard clause in franchise agreements. It protects Bombs Away from absorbing losses due to delinquent payments and ensures that franchisees bear the financial responsibility for their payment behavior. Prospective franchisees should be aware of this clause and ensure they have a solid financial plan to meet their payment obligations to Bombs Away on time to avoid these additional costs.