When is the Royalty Fee due to Bombs Away Franchising for any given month?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
- 4.2 Royalty Fee. Franchisee shall pay Bombs Away Franchising a monthly royalty fee (the "Royalty Fee") equal to 8% of Gross Sales. The Royalty Fee for any given month is due on the 2nd day of the following month.
4.3 Marketing Fund Contribution.
Source: Item 22 — CONTRACTS (FDD pages 35–36)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, the Royalty Fee, which is 8% of Gross Sales, is due to Bombs Away Franchising on the 2nd day of the following month. This means that sales from January are reported, and the associated royalty fee is paid, by February 2nd.
Bombs Away requires franchisees to report their monthly Gross Sales by the 2nd day of the following month. If a franchisee fails to report their monthly Gross Sales, Bombs Away may estimate the Royalty Fees and Marketing Fund Contributions by withdrawing 125% of the last Gross Sales reported. After the franchisee reports Gross Sales, the parties will adjust the actual fees.
Payments to Bombs Away for Royalty Fees, Marketing Fund Contributions, and any other amounts owed must be made via pre-authorized bank draft or another method Bombs Away requires. If a franchisee does not make a payment on time, Bombs Away will charge a $100 late fee plus interest on the unpaid amount at a rate of 18% per year (or the highest rate allowed by law).