Under what conditions might Bombs Away require a franchisee to reimburse expenses related to a customer complaint?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
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| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Currently $600, plus | On demand | Payable only if we conduct an in-person | |
| our out-of-pocket | evaluation of your business because of a | ||
| costs | governmental report, customer complaint | ||
| or other customer feedback, or your | |||
| default or non-compliance with any | |||
| system specification. | |||
| We may cure your non-compliance on | |||
| your behalf (for example, if you do not | |||
| have required insurance, we may purchase | |||
| insurance for you), and you will owe our | |||
| costs plus a 10% administrative fee. | |||
| $7,500 plus any | Payable if you sell your business. | ||
| broker fees and other | |||
| out-of-pocket costs | |||
| we incur | |||
| An amount equal to | |||
| royalty fees and | |||
| marketing fund | |||
| contributions for the | |||
| lesser of (i) 2 years | |||
| or (ii) the remaining | |||
| weeks of the | |||
| franchise term. |
Source: Item 6 — OTHER FEES (FDD pages 9–13)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, franchisees may be required to reimburse the franchisor for expenses related to customer complaints. Specifically, Bombs Away may take action to resolve customer complaints about a franchisee's business and, if they respond to a complaint, they may require the franchisee to reimburse them for their expenses.
Additionally, if Bombs Away conducts an in-person evaluation of a franchisee's business due to a customer complaint or other customer feedback, the franchisee is obligated to pay $600, plus Bombs Away's out-of-pocket costs, on demand. This evaluation is triggered by governmental reports, customer complaints, or the franchisee's default or non-compliance with system specifications.
These policies mean that Bombs Away franchisees need to prioritize customer service and compliance with the franchise system to avoid incurring additional expenses. Addressing customer complaints promptly and maintaining operational standards can help franchisees avoid these reimbursement costs. Franchisees should clarify with Bombs Away what specific actions might trigger these reimbursements and what types of expenses they might include.