When does a Baya Bar franchisee have to pay the Royalty Fee and Brand Fund Contribution?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
es the right, in Franchisor's sole discretion and at any time and from time to time, to increase the amount of the Brand Fund Contribution to any amount not to exceed three percent (3%) of the Gross Revenue. Payments will be made in the same manner and time as the Royalty Fees. If Franchisee fails to timely report Gross Revenue, then, in addition to a late fee and interest pursuant to Sections 6.3 and 6.4 hereof, Franchisor shall collect one hundred twenty percent (120%) of the last Brand Fund Contribution payable. Franchisor shall reconcile amounts when Gross Revenues are reported.
- 13.3.2 Franchisor shall direct all brand advertising and marketing programs and shall have sole discretion to approve or disapprove the creative concepts, materials and media used in such programs and the placement and allocation thereof. Franchisee agrees and acknowledges that the Brand Fund is intended to maximize general public recognition and acceptance of the Marks and enhance the collective success of all Franchised Businesses operating under the System.
- 13.3.3 Franchisor may, but has no obligation to, contribute to the Brand Fund on the same basis as Franchisee with respect to Baya Bar outlets operated by Franchisor or Franchisor's affiliates.
Source: Item 22 — CONTRACTS (FDD page 56)
What This Means (2024 FDD)
According to Baya Bar's 2024 Franchise Disclosure Document, the Brand Fund Contribution payments are made in the same manner and time as the Royalty Fees. The franchisee is required to contribute an amount equal to one percent (1%) of the Gross Revenue generated weekly to the Brand Fund. However, Baya Bar reserves the right to increase the Brand Fund Contribution to any amount not to exceed three percent (3%) of the Gross Revenue.
If a Baya Bar franchisee fails to report Gross Revenues timely, Baya Bar will collect one hundred twenty percent (120%) of the last Brand Fund Contribution payable, in addition to a late fee and interest. Baya Bar will reconcile amounts when Gross Revenues are reported.
If the Royalty Fee, Brand Fund Contribution, or any Gross Revenue Reports are not received as required, the franchisee shall pay a late fee of Fifty Dollars ($50.00), in addition to the overdue amount. Any and all amounts that shall become due bear interest from the date due until paid at the rate of 18% per annum or at the highest rate permitted by law, whichever is lower. Baya Bar 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.