Bombshells
Bombshells is a military-themed restaurant and sports bar offering a variety of menu items and beverages. Known for its patriotic ambiance, it operates in the casual dining and sports bar sector.
Bombshells franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a single Bombshells Restaurant ranges from $3,594,000 to $5,653,500 for new development and construction. This amount includes an initial franchise fee of $50,000 [p.20].
What is the initial franchise fee?
The initial franchise fee is $50,000, less any applicable Development Fee Credit. This fee is non-refundable upon receipt by the franchisor and is due at the execution of the Franchise Agreement [p.160, p.20, p.12, p.86]. However, in South Dakota, this fee may be deferred until operations begin and initial training is provided [p.228].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is 5.5% of the Restaurant's Gross Sales for the immediately preceding week [p.160]. Additionally, you must contribute to the Advertising Fund as required under Section 9.A. of the Agreement [p.171], though specific amounts are not detailed in these excerpts.
How long is the initial franchise agreement, and can I renew it?
The duration of the initial franchise agreement isn't specified in these excerpts. Additionally, while the possibility of renewal is not directly addressed, the document does mention that a provision may exist to refuse renewal without fairly compensating the franchisee [p.5], suggesting there might be conditions or terms for renewal but they are not detailed here.
Can I sell or transfer my franchise, and what does that require?
The franchisor can refuse to permit the transfer of ownership of your franchise except for good cause [p.5]. Good cause includes but is not limited to unspecified reasons, and this provision does not prevent the franchisor from exercising a right of first refusal to purchase the franchise [p.5].
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement on any grounds available by law [p.271]. Additionally, the franchisor may terminate the agreement if you fail to comply with any lawful provision of the franchise agreement and do not cure such failure after being given written notice and a reasonable opportunity to cure, which cannot exceed 30 days [p.5].
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts.
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory. You are afforded a Protected Area defined before signing the Franchise Agreement, but there is no guarantee of a minimum area of protection [p.156]. Additionally, you may face competition from other franchisees and outlets owned by the company or competitive brands controlled by them [p.35, p.36].
What training and ongoing support does the franchisor provide?
The franchisor provides an initial opening training team for the first three restaurants, consisting of trained representatives who stay between 10 to 14 days to provide on-site pre-opening and opening training. Ongoing, in-house training is required through maintaining a certain number of Certified Trainers. Additionally, the franchisor offers an annual initial training program as needed, supervised by experienced staff members with at least six months of experience in the Bombshells system [p.32-33].
How many franchised outlets are there, and how many have closed or been terminated?
This isn't specified in the excerpts.
Does the franchisor share any financial performance or earnings information?
The franchisor may provide financial performance information if there is a reasonable basis for it and it is included in the disclosure document [p.50]. However, other than the information specified in Item 19, the franchisor does not make any financial performance representations and does not authorize its employees or representatives to make such representations either orally or in writing [p.51].
What am I restricted to selling, and where must I buy supplies?
You are restricted to offering and selling only the menu items, products, and services that the franchisor has expressly approved in writing [p.39]. You must stop selling any items disapproved by the franchisor in writing. Regarding supplies, you may have to purchase or lease certain items from the franchisor or a limited group of suppliers designated by them, which might be more expensive than other options [p.3]. For specific marketing materials like posters and table tents, you are required to purchase them from a supplier designated by the franchisor [p.22].