For Baya Bar, what is the deadline for reporting Gross Sales each week?
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 The royalty fee and marketing fund fees will be withdrawn from your designated bank account by electronic funds transfer ("EFT") weekly on Tuesday based on the Shop's Gross Sales for the preceding week ending Sunday.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.
Source: Item 6 — OTHER FEES (FDD pages 11–16)
What This Means (2024 FDD)
According to Baya Bar's 2024 Franchise Disclosure Document, franchisees are required to report their Gross Sales to Baya Bar by Tuesday of each week. This report must cover the sales from the previous week, which ends on Sunday.
Baya Bar uses the Gross Sales figures to calculate royalty and marketing fund fees. These fees are then withdrawn from the franchisee's designated bank account via electronic funds transfer (EFT) every Tuesday. The withdrawal is based on the Gross Sales reported for the preceding week ending on Sunday.
Failure to report Gross Sales by the Tuesday deadline can result in Baya Bar debiting the franchisee's account for 120% of the amount of the last royalty and marketing fund fees that were debited. Once the actual Gross Sales are determined, Baya Bar will then debit the account for any remaining balance owed. Conversely, if the initial debit is greater than the amount actually owed, Baya Bar will credit the excess amount to the franchisee's account during the following week's debit.
This reporting schedule and the associated penalties for non-compliance are important for prospective franchisees to understand, as they directly impact cash flow and financial management. Franchisees need to establish systems to accurately track and report Gross Sales in a timely manner to avoid potential overcharges or discrepancies.