Under what conditions will Bombs Away charge a non-compliance fee?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
| employees | | | | | $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. | | | Amount that we | | If we pay any amount that you owe or are | | | spend on your | | required to pay to a third party, you must | | | behalf, plus 10% | | reimburse us. |
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| $100 plus interest on | On demand | We may charge a late fee if you fail to | |
| the unpaid amount at | make a required payment when due. |
Source: Item 6 — OTHER FEES (FDD pages 9–13)
What This Means (2024 FDD)
According to the 2024 Bombs Away Franchise Disclosure Document, Bombs Away may charge a non-compliance fee of $500 if a franchisee's business is not in compliance with the system specifications or the franchise agreement. This fee is only applied if the franchisee fails to correct the non-compliance within 30 days of receiving notice from Bombs Away.
Furthermore, if the non-compliance continues after 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.
Bombs Away may also conduct an in-person evaluation of a franchisee's business due to a governmental report, customer complaint or other customer feedback, or a franchisee's default or non-compliance with any system specification. In this case, Bombs Away will charge the franchisee $600, plus out-of-pocket costs.