How does Baya Bar collect royalty and marketing fund fees?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
You must report your Gross Sales to us by Tuesday each week for the previous week ending Sunday. The royalty fee and marketing fund fees will be withdrawn from your designated bank account by electronic funds transfer ("EFT") weekly on Tuesday based on the Shop's Gross Sales for the preceding week ending Sunday. If you do not report the Shop's Gross Sales, we may debit your account for 120% of the last royalty fee and marketing fund fees that we debited. If the fees we debit are less than the fees you actually owe us, once we have been able to determine the true and correct Gross Sales, we will debit your account for the balance on a day we specify. If the fees we debit are greater than the fees you actually owe us, we will credit the excess against the amount we otherwise would debit from your account during the following week.
If any state imposes a sales or other tax on the royalty fees, then we have the right to collect this tax from you.
Source: Item 6 — OTHER FEES (FDD pages 11–16)
What This Means (2024 FDD)
According to Baya Bar's 2024 Franchise Disclosure Document, franchisees must report their Gross Sales to Baya Bar by Tuesday of each week for the previous week, which ends on Sunday. Baya Bar then withdraws the royalty and marketing fund fees weekly on Tuesday through electronic funds transfer (EFT) from the franchisee's designated bank account. The fees are based on the Shop's Gross Sales for the preceding week ending Sunday.
If a Baya Bar franchisee fails to report their Gross Sales, Baya Bar has the right to debit the franchisee's account for 120% of the last royalty fee and marketing fund fees that were debited. If the amount debited is less than what is actually owed, Baya Bar will debit the account for the balance once the true Gross Sales have been determined. Conversely, if the debit is greater than the amount owed, Baya Bar will credit the excess against the amount that would otherwise be debited from the account during the following week.
Additionally, if any state imposes a sales or other tax on the royalty fees, Baya Bar has the right to collect this tax from the franchisee. This ensures that Baya Bar receives the full amount of the royalty fees owed, regardless of any state-imposed taxes. These policies are uniformly imposed, meaning that Baya Bar applies them consistently to all franchisees.