Under what circumstances would Bombs Away charge a $600 fee plus out-of-pocket costs?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
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| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Currently $600, plus | On demand | Payable only if we conduct an in-person | |
| our out-of-pocket | evaluation of your business because of a | ||
| costs | governmental report, customer complaint | ||
| or other customer feedback, or your | |||
| default or non-compliance with any | |||
| system specification. | |||
| We may cure your non-compliance on | |||
| your behalf (for example, if you do not | |||
| have required insurance, we may purchase | |||
| insurance for you), and you will owe our | |||
| costs plus a 10% administrative fee. | |||
| $7,500 plus any | Payable if you sell your business. |
Source: Item 6 — OTHER FEES (FDD pages 9–13)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, there are two instances where the franchisor may charge a $600 fee plus out-of-pocket costs. First, Bombs Away may charge this fee if they conduct an in-person evaluation of the franchisee's business due to a governmental report, customer complaint or other customer feedback, or the franchisee's default or non-compliance with any system specification.
Second, Bombs Away may charge a $600 per day fee plus out-of-pocket expenses (such as travel, lodging, and meals for employees providing onsite support) if they provide in-person support to the franchisee in response to their request. This fee covers the cost of the support provided and any associated expenses incurred by Bombs Away.
It is important for prospective Bombs Away franchisees to understand these potential fees and the circumstances under which they may be charged. Franchisees should strive to maintain compliance with Bombs Away's system specifications and address customer complaints promptly to avoid incurring the in-person evaluation fee. Additionally, franchisees should carefully consider the cost of in-person support before requesting it from Bombs Away.