Is there any assurance that a new Bombs Away franchisee will sell as much as the represented outlet?

According to Bombs Away's 2024 Franchise Disclosure Document, there is no assurance that a new franchisee will achieve the same sales as the represented outlet. The FDD includes financial performance information for the Bombs Away business owned by their affiliate, which was open from January 1, 2023, to December 31, 2023. This location, which is in California, reported gross sales of $419,423. The estimated royalty fees for this location are $33,554, and the estimated marketing fund contribution is $8,389.

The FDD emphasizes that individual results may vary, and there is no guarantee that a new franchisee will achieve the same level of sales. This financial performance representation is based on historical data from a single Bombs Away business owned by an affiliate and does not account for costs of sales, operating expenses, or other costs that would impact net income or profit. Prospective franchisees are advised to conduct their own independent investigation of costs and expenses.

Bombs Away also states that written substantiation of the information contained in Item 19 will be made available to prospective franchisees upon reasonable request. Aside from the financial performance representation provided, Bombs Away does not make any other financial performance representations, nor do they authorize employees or representatives to make such representations, either orally or in writing. If a prospective franchisee receives any other financial performance information or projections, they are advised to report it to Bombs Away's management, the Federal Trade Commission, and the appropriate state regulatory agencies.