Under what conditions can Bombs Away Franchising charge the franchisee for an evaluation?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
If Bombs Away Franchising conducts an evaluation because of a governmental report, customer complaint or other customer feedback, or a default or non-compliance with any System Standard by Franchisee (including following up a previous failed evaluation), then Bombs Away Franchising may charge all out-ofpocket expenses plus its then-current evaluation fee to Franchisee.
Source: Item 22 — CONTRACTS (FDD pages 35–36)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, Bombs Away Franchising can charge a franchisee for an evaluation under specific circumstances. Bombs Away may conduct evaluations of a franchisee's business operations, including observing operations, conducting physical inventories, evaluating physical conditions, monitoring sales activity, and speaking with employees and customers. These evaluations are used to ensure compliance with Bombs Away's standards and to identify areas for improvement.
Bombs Away Franchising may charge the franchisee for the evaluation if the evaluation is conducted due to a governmental report, a customer complaint or other customer feedback, or if the evaluation is triggered by a default or non-compliance with any System Standard by the franchisee. This includes situations where the evaluation is a follow-up to a previously failed evaluation. In these instances, Bombs Away Franchising can charge the franchisee for all out-of-pocket expenses incurred during the evaluation, in addition to their then-current evaluation fee.
This policy means that Bombs Away franchisees need to maintain compliance with all system standards and address customer feedback promptly to avoid incurring additional evaluation fees. Franchisees should also be aware that failing an initial evaluation can lead to subsequent evaluations at the franchisee's expense. This creates a financial incentive for franchisees to proactively manage their business and adhere to Bombs Away's operational guidelines.