Under what conditions may Bombs Away Franchising charge a non-compliance fee?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
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. Thereafter, Bombs Away Franchising may charge Franchisee $250 per week until Franchisee ceases such non-compliance. This fee is a reasonable estimate of Bombs Away Franchising's internal cost of personnel time attributable to addressing the non-compliance, and it is not a penalty or estimate of all damages arising from Franchisee's breach. The non-compl
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 may charge a non-compliance fee of $500 for each instance a franchisee fails to comply with the System Standards or the Franchise Agreement. This fee applies to instances other than the franchisee's failure to pay fees owed to Bombs Away Franchising.
The franchisee has 30 days after notice to correct the non-compliance. If the franchisee fails to correct the issue within this timeframe, Bombs Away Franchising may charge $250 per week until the franchisee ceases the non-compliance.
The FDD states that these fees are a reasonable estimate of Bombs Away Franchising's internal cost of personnel time spent addressing the non-compliance, and it is not a penalty or estimate of all damages resulting from the franchisee's breach. This non-compliance fee is in addition to all of Bombs Away Franchising's other rights and remedies, including default and termination under Section 14.2 of the agreement.