What is the weekly non-compliance fee charged by Bombs Away after the initial 30-day notice period?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Fee | Amount | Due Date | Remarks | ||
|---|---|---|---|---|---|
| Pass-through of | Varies | We have the right to require franchisees to | |||
| costs, plus | use third-party vendors and suppliers that | ||||
| reasonable | we designate. Examples can include | ||||
| administrative | computer support vendors, mystery | ||||
| charge. Currently, | shopping, and customer feedback systems. | ||||
| none. | The vendors and suppliers may bill | ||||
| franchisees directly, or we have the right | |||||
| to collect payment for these vendors | |||||
| together with a reasonable markup or | |||||
| charge for administering the payment | |||||
| program. | |||||
| Currently, $30-$100 | We require you to use certain software as | ||||
| per staff member, | described in Item 11. You pay | ||||
| per month; also | subscription/technology fees directly to | ||||
| fees paid to | us. | ||||
| suppliers: $35 up to | |||||
| 5 vehicles per month | |||||
| or $8/vehicle/mo for | |||||
| GPS tracking, | |||||
| $25/month for single | |||||
| user for phone | |||||
| system paid; $25 per | |||||
| background check; | |||||
| $25/month | |||||
| Quickbooks Online; | |||||
| optional payroll | |||||
| supplier fee | |||||
| $80based on | |||||
| number of | |||||
| 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. |
Source: Item 6 — OTHER FEES (FDD pages 9–13)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, if a franchisee's business is not in compliance with the system specifications or the franchise agreement, Bombs Away may charge a non-compliance fee. Initially, Bombs Away will provide a 30-day notice to correct the non-compliance. If the franchisee fails to correct the issue within this period, Bombs Away may impose a $500 fee.
Following the initial $500 fee, Bombs Away can charge an additional $250 per week. This weekly fee continues until the franchisee rectifies the non-compliance. This means that the franchisee will incur ongoing costs for every week they remain out of compliance, creating a financial incentive to promptly address any issues raised by Bombs Away.
This non-compliance fee structure is designed to ensure that all Bombs Away franchise locations adhere to the brand's standards and operational guidelines. By implementing such fees, Bombs Away aims to maintain consistency and quality across its franchise network, which is a common practice in franchising to protect brand reputation and customer experience.