When must a Baya Bar franchisee furnish Franchisor with a Gross Revenue Report?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee shall, on the Tuesday following the close of each calendar week (Monday through Sunday), furnish Franchisor with a report showing Franchisee's Gross Revenue at or from the Franchised Business and/or made pursuant to the rights granted hereunder during such period (the "Gross Revenue Report").
The Gross Revenue Report shall be in such form and
shall contain such information as Franchisor may from time to time prescribe. Franchisor reserves the right to establish a point of sale system ("POS System") that Franchisor may require Franchisee to use in the operation of the Franchised Business. At Franchisor's option, Franchisee shall submit the Gross Revenue Report by an electronic transfer of data via the POS System at the times and interims then specified by Franchisor.
- 6.1.4 Method of Payment.
Franchisee shall, together with the submission of the Gross Revenue Report, pay Franchisor the Royalty Fee and the Brand Fund Contribution, as defined and more particularly described in Article 13, then due.
At Franchisor's request, Franchisee must execute documents, including but not limited to, the Authorization attached as Attachment 5, that allow Franchisor to automatically take the Royalty Fee and Brand Fund Contribution due as well as other sums due Franchisor, from business bank accounts via electronic funds transfers or Automated Clearing House ("ACH") payments.
Franchisee's failure to allow electronic funds transfers or ACH payments on an ongoing basis is a material breach of this Agreement.
If Franchisee fails to timely report Gross Revenue, then, in addition to a late fee and interest pursuant to Sections 6.2 and 6.3 hereof, Franchisor shall collect one hundred twenty percent (120%) of the last Royalty Fee payable.
Franchisor shall reconcile amounts when Gross Revenues are reported.
Franchisor reserves the right to modify the method and frequency of collection of the Royalty Fee and Brand Fund Contribution upon forty-five (45) days' prior notice to Franchisee.
Source: Item 22 — CONTRACTS (FDD page 56)
What This Means (2024 FDD)
According to Baya Bar's 2024 Franchise Disclosure Document, a franchisee must furnish the franchisor with a Gross Revenue Report each week. Specifically, the franchisee must submit this report on the Tuesday following the close of each calendar week, which runs from Monday through Sunday. This report must detail the franchisee's gross revenue generated at or from the franchised business, or made in accordance with the rights granted under the franchise agreement, during that weekly period.
The Gross Revenue Report must be in a format and contain information as prescribed by Baya Bar from time to time. Baya Bar retains the right to implement a point-of-sale (POS) system that franchisees may be required to use. If Baya Bar exercises this option, the franchisee must submit the Gross Revenue Report via electronic data transfer through the POS system at the times specified by Baya Bar.
Along with the Gross Revenue Report, the franchisee is also required to pay the Royalty Fee and the Brand Fund Contribution that are due. Failure to report Gross Revenue in a timely manner can result in a late fee, interest, and a penalty where Baya Bar collects 120% of the last Royalty Fee payable. Baya Bar will reconcile amounts when Gross Revenues are reported.
Baya Bar also reserves the right to change the method and frequency of collecting the Royalty Fee and Brand Fund Contribution, providing the franchisee with 45 days' prior notice. It is important for prospective franchisees to understand these reporting requirements and the associated financial obligations and potential penalties for non-compliance.