Under what circumstances will Bombs Away charge its actual costs?

According to Bombs Away's 2024 Franchise Disclosure Document, the franchisor may charge franchisees their actual costs under specific circumstances. Bombs Away will charge its actual costs, including reasonable attorney fees, if it incurs costs while attempting to collect amounts owed by the franchisee. This means that if a franchisee fails to make required payments, Bombs Away may take action to recover the debt, and the franchisee will be responsible for covering Bombs Away's expenses in pursuing collection.

Additionally, Bombs Away may conduct an in-person evaluation of a franchisee's business due to a governmental report, customer complaint or other customer feedback, or the franchisee's default or non-compliance with system specifications. In these instances, the franchisee is responsible for $600 plus Bombs Away's out-of-pocket costs. Bombs Away may also cure a franchisee's non-compliance on their behalf, such as purchasing required insurance, and the franchisee will owe Bombs Away's costs plus a 10% administrative fee.

Furthermore, if Bombs Away pays any amount that a franchisee owes or is required to pay to a third party, the franchisee must reimburse Bombs Away for that amount, plus a 10% administrative fee. This could include situations where Bombs Away steps in to cover expenses that the franchisee is obligated to pay. Franchisees should be aware of these potential costs and ensure they maintain compliance with the franchise agreement and system standards to avoid incurring additional fees.