What is the total estimated initial investment range for a Bombs Away franchise?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
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| Type of expenditure | Amou | nt | Method of payment | When due | To whom payment is to be made |
|---|---|---|---|---|---|
| Inventory | $500 - | $1,000 | Check, debit, and/or credit | Upon ordering | Vendors |
| Licenses and Permits | $100 - | $500 | Check | Upon application | Government |
| Dues and Subscriptions | $40 - | $500 | Check, debit, and/or credit | As incurred | Vendors, trade organizations |
| Professional Fees | $1,500 - | $3,000 | Check, debit, and/or credit | As incurred or when billed | Professional service firms |
| (lawyer, accountant, | |||||
| etc.) | |||||
| Travel, lodging and meals for initial training | $2,000 - | $5,000 | Cash, debit or credit | As incurred | Airlines, hotels, and restaurants |
| Additional funds (for first 3 months) (see Note 3) | $5,000 - | $15,000 | Varies | Varies | Employees, suppliers |
| Total | $51,740 - |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 13–15)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, the estimated total initial investment ranges from $51,740 to $113,000. This investment covers various expenditures that a franchisee will incur when starting the business. These expenses include the initial franchise fee, market introduction program costs, furniture, fixtures, equipment, computer systems, insurance, a vehicle, signage, inventory, licenses and permits, dues and subscriptions, professional fees, travel, lodging and meals for initial training, and additional funds for the first 3 months of operation.
The initial franchise fee is $30,000, payable upon signing the franchise agreement. The cost for a market introduction program ranges from $10,000 to $15,000. The investment in furniture, fixtures, and equipment is estimated to be between $100 and $500, while computer systems could cost from $1,000 to $3,500. Insurance costs range from $500 to $3,500, and signage is estimated to cost between $1,000 and $2,500. A significant variable is the vehicle, which could range from $0 to $30,000, depending on whether the franchisee already owns a suitable vehicle or needs to lease one.
Other notable costs include inventory ($500 to $1,000), licenses and permits ($100 to $500), dues and subscriptions ($40 to $500), and professional fees ($1,500 to $3,000). Additionally, travel, lodging, and meals for the initial training program are estimated to cost between $2,000 and $5,000. The largest variable after the vehicle is "additional funds" for the first three months of operation, estimated at $5,000 to $15,000. This covers payroll, additional inventory, and other operating expenses exceeding income generated during the initial period. It's important to note that this estimate does not include any salary or compensation for the franchisee.