What is the role of Bombs Away in administering the Marketing Fund?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
d) procedures for our system.
- F. Marketing Fund. We will administer the Marketing Fund (Section 5.5). We will prepare an unaudited annual financial statement of the Marketing Fund within 120 days of the close of our fiscal year and will provide the financial statement to you upon request. (Section 9.3)
- G. Website. We will maintain a website for the Bombs Away brand, which will include your business information and telephone number. (Section 5.5)
Advertising
Our obligation. We will use the Marketing Fund only for marketing and related purposes and costs. Media coverage is primarily local. We use outside vendors and consultants to produce advertising. We are not required to spend any amount of advertising in the area or territory where any particular franchisee is located. We will maintain the brand website (which may be paid for by the Marketing Fund). We have no other obligation to conduct advertising.
Your own advertising material. You may use your own advertising or marketing material only with our approval. To obtain our approval, you must submit any proposed advertising or marketing material at least 14 days prior to use. If we do not respond, the material is deemed rejected. If you develop any advertising or marketing materials, we may use those materials for any purpose, without any payment to you.
Advertising council. We do not have an advertising council composed of franchisees. The franchise agreement does not give us the power to form an advertising council.
Local or Regional Advertising Cooperatives. We do not currently have any local or regional advertising cooperatives.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 18–23)
What This Means (2024 FDD)
According to the 2024 Bombs Away Franchise Disclosure Document, Bombs Away administers the Marketing Fund. Franchisees are required to contribute 2% of their gross sales per month to the Marketing Fund, although Bombs Away retains the right to have other franchisees contribute a different amount or at a different rate. Notably, Bombs Away-owned outlets are not obligated to contribute to the Marketing Fund.
Bombs Away states that it will use the Marketing Fund solely for marketing and related costs. The FDD specifies that media coverage is primarily local, and Bombs Away utilizes outside vendors and consultants to produce advertising materials. Bombs Away is not required to spend any specific amount on advertising in the area or territory where any particular franchisee is located. Any unspent funds from the Marketing Fund in a given fiscal year will remain in the fund for use in subsequent years. The funds are not used to solicit new franchise sales.
Bombs Away will provide franchisees with an unaudited annual financial statement of the Marketing Fund within 120 days of the close of its fiscal year, available upon request. The Marketing Fund itself is not audited. As Bombs Away is a new franchisor, no money was spent from the Marketing Fund in the most recently concluded fiscal year. This lack of historical spending data may make it difficult for prospective franchisees to assess the effectiveness of the fund's management and potential return on their contributions.