In what currency must the Bang Cookies royalty fee be paid?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
rth in this Agreement. If any federal, state or local tax or withholding obligation, other than an income tax, is imposed on the Royalty Fee paid by Franchisee to Franchisor that, Franchisor cannot directly and, dollar of dollar, offset against taxes required to be paid by Franchisor under any applicable federal or state laws, then Franchisee must compensate Franchisor in amounts that offset the tax / withholding obligations.
On-Going Obligation: The Royalty Fee is an on-going obligation due from Franchisee to Franchisor, is payable in United States Dollars and, as designated by Franchisor, is to be calculated and paid weekly (unless another recurring Accounting Period is designated by Franchisor) on the Gross Sales for the previous weekly Accounting Period for each and every week throughout the Term of this Agreement and any applicable renewal term.
Payment and Due Date: Royalty Fee payments will be paid weekly and sent by ACH, electronic funds transfer, or as otherwise designated by Franchisor and shall be due on the Thursday of each weekly Accounting Period (for the preceding week and each week thereafter throughout the entire Term of this Agreement) or such other specific day of the week that Franchisor designates from time to time or for such other period that Franchisor may designate (the "Due Date")(the term Due Date is further defined in Article 1 of this Agreement).
Source: Item 23 — RECEIPTS (FDD pages 56–245)
What This Means (2024 FDD)
According to Bang Cookies' 2024 Franchise Disclosure Document, the royalty fee is payable in United States Dollars. Franchisees must pay a weekly royalty fee equal to 6% of their weekly Gross Sales. This royalty fee is a continuing obligation throughout the term of the Franchise Agreement and any applicable renewal term.
The Royalty Fee is calculated weekly and is nonrefundable. Payments are to be made via ACH, electronic funds transfer, or as otherwise designated by Bang Cookies. The payments are due on Thursday of each weekly Accounting Period for the preceding week, or on such other specific day of the week that Bang Cookies designates.
If any federal, state, or local tax or withholding obligation, other than an income tax, is imposed on the Royalty Fee paid by the franchisee to Bang Cookies, and Bang Cookies cannot directly offset this against taxes they are required to pay under federal or state laws, the franchisee must compensate Bang Cookies for these tax/withholding obligations.