What is the weekly fee that Bombs Away Franchising may charge for continued non-compliance?
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 franchisee $250 per week for continued non-compliance with the System Standards or the Franchise Agreement. This fee applies if the franchisee fails to correct the non-compliance within 30 days after receiving notice.
This non-compliance fee is intended to cover Bombs Away Franchising's internal costs related to addressing the non-compliance. The FDD states explicitly that this fee is a reasonable estimate of personnel time and is not a penalty or a comprehensive estimate of all potential damages resulting from the breach.
It's important to note that this non-compliance fee is in addition to any other rights and remedies Bombs Away Franchising may have, including the possibility of default and termination of the franchise agreement. Therefore, franchisees should prioritize adhering to System Standards and the Franchise Agreement to avoid these fees and potential further consequences.