What specific product must a Bombs Away franchisee purchase from Bombs Away Brand, LLC?

According to Bombs Away's 2024 Franchise Disclosure Document, franchisees are required to purchase customized litter box covers for the Van Ness® CP2 large litter from Bombs Away Brand, LLC, which is an affiliate of the franchisor. This is a specific obligation outlined in Item 8 of the FDD, which details restrictions on sources of products and services. While Bombs Away does not currently derive revenue from these required purchases, Bombs Away Brand, LLC does. In 2023, Bombs Away Brand, LLC's revenue from all required purchases and leases of products and services by franchisees was $0, as Bombs Away is a new franchisor.

Beyond the litter box covers, franchisees must also adhere to other specific obligations, such as obtaining required insurance, purchasing specified computer software and hardware (as detailed in Item 11), utilizing CRM Management administrative services from an approved supplier, and using a vehicle with the Bombs Away branded logo/wrap. The FDD estimates that required purchases and leases to establish and operate the business each account for 25% to 50% of the franchisee's total purchases and leases.

Bombs Away retains the right to modify specifications and standards for any aspect of the brand system, potentially requiring franchisees to adapt to new requirements. While Bombs Away negotiates purchase arrangements with suppliers, including price terms, for the benefit of franchisees, these arrangements are subject to change. Franchisees should be aware that Bombs Away may receive payments from designated suppliers based on franchisee purchases, such as $10 for each Wysiwash® product sold through the referral program, with the franchisee also receiving a $10 discount on the product.

Prospective franchisees should carefully consider these purchasing obligations and the potential for changes in required suppliers or products. It is important to understand the financial implications of these requirements and how they may impact the overall profitability of the Bombs Away franchise.