factual

When is the Brand Development Fund Fee due for Bang Cookies franchisees?

Bang_Cookies Franchise · 2024 FDD

Answer from 2024 FDD Document

  • (1) If Franchisor institutes the Brand Development Fund, Franchisee shall pay, on the Due Date, a mandatory and continuing fee to the Brand Development Fund in an amount equal to a percentage of Gross Sales (as determined and designated by Franchisor in Franchisor's Reasonable Business Judgment) for each weekly Accounting Period (the "Brand Development Fund Fee"), provided, however, Franchisee will not be required to contribute more than 2% of the Gross Sales of the Franchised Business for each weekly Accounting Period;

  • (2) Franchisor will provide Franchisee with written notice of the percentage of Gross Sales that Franchisee is required to contribute to the Brand Development Fund.

Upon such written notice to Franchisee, the percentage of Gross Sales to be paid by Franchisee to the Brand Development Fund will be applicable for each and every weekly Accounting Period thereafter during the Term until otherwise designated by Franchisor in writing.

The Brand Development Fund Fee shall be paid to Franchisor on the Due Date and in accordance with the payment terms and method set forth in Article 5.B. for the payment of Royalty Fees;

Source: Item 23 — RECEIPTS (FDD pages 56–245)

What This Means (2024 FDD)

According to Bang Cookies's 2024 Franchise Disclosure Document, the Brand Development Fund Fee is due on the Due Date for each weekly Accounting Period. The fee is a percentage of Gross Sales, determined by Bang Cookies in its reasonable business judgment. However, the franchisee will not be required to contribute more than 2% of Gross Sales for each weekly Accounting Period.

Bang Cookies will provide written notice to the franchisee regarding the specific percentage of Gross Sales required for the Brand Development Fund Fee. Once notified, this percentage will remain applicable for each weekly Accounting Period throughout the term, unless Bang Cookies designates otherwise in writing.

The Brand Development Fund Fee must be paid to Bang Cookies on the Due Date, following the payment terms and methods outlined in Article 5.B, which also applies to Royalty Fees. This means the Brand Development Fund Fee and Royalty Fees share the same payment schedule and procedures.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.