factual

How often are Bang Cookies royalty fees calculated?

Bang_Cookies Franchise · 2024 FDD

Answer from 2024 FDD Document

Throughout the Term of this Agreement, Franchisee shall pay to Franchisor a continuing weekly nonrefundable royalty fee (the "Royalty Fee") in an amount equal to 6% (the "Royalty Rate") of Franchisee's weekly Gross Sales. The Royalty Fee shall be calculated on a weekly basis for each respective weekly

Accounting Period. The Royalty Fee during any Renewal Term shall be determined by Franchisor but shall not be less than the Royalty Fee and Royalty Rate set forth 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's 2024 Franchise Disclosure Document, the royalty fee is calculated weekly. Franchisees must pay a continuing weekly royalty fee equal to 6% of their weekly Gross Sales. This royalty fee is nonrefundable.

The 6% royalty rate is calculated on a weekly basis for each respective weekly Accounting Period. The franchisee's obligation to pay this fee continues throughout the term of the agreement and any applicable renewal term. Unless Bang Cookies designates another recurring Accounting Period, the royalty fee is calculated and paid weekly on the Gross Sales for the previous weekly Accounting Period for each and every week.

Royalty Fee payments are due on the Thursday of each weekly Accounting Period for the preceding week. Payments are to be made via ACH, electronic funds transfer, or as otherwise designated by Bang Cookies. This payment schedule continues throughout the entire term of the agreement.

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.