Under what circumstances might a Bombs Away franchisee be charged a replacement/additional training fee?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
ranchisee shall contribute to the Market Cooperative a percentage of Gross Sales (or other amount) determined by the Market Cooperative.
- 4.4 Replacement / Additional Training Fee. If Franchisee sends an employee to Bombs Away Franchising's training program after opening, Bombs Away Franchising may charge its then-current training fee. As of the date of this Agreement, the training fee is $350 per day.
- 4.5 Non-Compliance Fee. Bombs Away Franchising may charge Franchisee $500 for any instance of non-compliance with the System Standards or this Agreement (other than Franchisee's non-payment of a fee owed to Bombs Away Franchising) which Franchisee fails to cure after 30 days' notice.
Source: Item 22 — CONTRACTS (FDD pages 35–36)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, a franchisee may incur training fees under specific circumstances. If a franchisee sends an employee to Bombs Away's training program after the business has opened, Bombs Away has the right to charge its current training fee. As of the date of the agreement, this fee is $350 per day. This applies to training programs required by Bombs Away for the Principal Executive or other employees, regardless of the format or location of the training.
This means that while the initial training for the Principal Executive is provided without a fee, any subsequent or additional training for the franchisee's employees will likely incur a daily charge. This could significantly increase operational costs, especially if multiple employees require training or if Bombs Away mandates frequent or extensive training programs. Franchisees should factor these potential costs into their financial projections and business planning.
Furthermore, if the training program necessitates travel for the Principal Executive or any other employee, the franchisee is responsible for covering all associated travel, living, and other related expenses. This is in addition to the daily training fee of $350, potentially creating a substantial financial burden. It is important for prospective franchisees to clarify the frequency, duration, and location of required training programs to accurately estimate these potential costs and assess the financial implications for their Bombs Away franchise.