Does Bombs Away have the right to establish local or regional advertising cooperatives?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Market Cooperative Contribution | As determined by co-op. Currently, none. | Monthly, on the 2nd day of the following month | We have the right to establish local or regional advertising cooperatives. The maximum contribution that a co-op may require is 5% of gross sales. |
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 establish local or regional advertising cooperatives. Currently, there are no market cooperatives. If Bombs Away establishes these cooperatives, franchisees may be required to contribute.
The FDD specifies that the contribution amount is determined by the cooperative itself. However, the maximum contribution that a co-op may require is 5% of the franchisee's gross sales. This contribution would be paid monthly, on the 2nd day of the following month, similar to other fees like royalties and marketing fund contributions.
Prospective franchisees should be aware that while no such cooperatives exist currently, Bombs Away reserves the right to create them in the future. This could add an additional expense of up to 5% of gross sales, impacting the franchisee's profitability. It is important to factor this potential cost into financial projections and understand the potential benefits of cooperative advertising in the specific market.