When do Royalty Fee payments commence for an Antioch Pizza Shop franchise?
Antioch_Pizza_Shop Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Royalty Fee | 5% of gross revenues | Monthly on the 7th day of the calendar month; payments commence 30 days after the Antioch Pizza Shop Business opens for business | See Note 1 |
Source: Item 6 — Other Fees (FDD pages 13–17)
What This Means (2025 FDD)
According to Antioch Pizza Shop's 2025 Franchise Disclosure Document, the royalty fee, which is 5% of gross revenues, is due monthly on the 7th day of each calendar month. Franchisees must begin making these payments 30 days after the Antioch Pizza Shop Business opens for business. Gross revenues include all receipts from products and services, excluding sales tax, gratuities, unredeemed gift cards, and good-faith refunds.
In practical terms, this means that an Antioch Pizza Shop franchisee will not have to pay royalty fees during the initial startup phase. This grace period of 30 days after opening can help with cash flow during the critical early weeks of operation. However, franchisees need to be prepared to remit 5% of their gross revenues by the 7th of each month, starting the month after the first 30 days of operation.
It is important for prospective franchisees to understand exactly what constitutes "gross revenues" as defined in the FDD, as this figure directly impacts the royalty fee calculation. Keeping accurate records of sales and allowable deductions is essential for compliance. Franchisees should also be aware that Antioch Pizza Shop may vary the frequency and method of payment of fees, potentially requiring electronic funds transfer or checks.