Under what conditions does Bombs Away charge a $500 non-compliance fee?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| $500 | We may charge you $500 if your business | ||
| is not in compliance with our system | |||
| specifications or the franchise agreement | |||
| and you fail to correct the non-compliance | |||
| after 30 days’ notice. Thereafter, we may | |||
| charge you $250 per week until you | |||
| correct such non-compliance. |
Source: Item 6 — OTHER FEES (FDD pages 9–13)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, a $500 fee may be charged if a franchisee's business is not in compliance with the system specifications or the franchise agreement. This fee is imposed only if the franchisee fails to correct the non-compliance within 30 days after receiving notice from Bombs Away.
Furthermore, if the non-compliance continues beyond the initial 30-day period, Bombs Away may charge an additional $250 per week until the franchisee rectifies the issue. This escalating fee structure is designed to incentivize franchisees to promptly address and resolve any deviations from the brand's standards and contractual obligations.
This policy highlights the importance of adhering to Bombs Away's operational standards and the franchise agreement. Franchisees should ensure they understand and comply with all requirements to avoid incurring these non-compliance fees, which can significantly impact their business's financial performance. It is also important to note that the $500 fee is separate from other fees Bombs Away may charge for issues such as serving customers outside of the franchisee's territory or for in-person support.