What information must be included in the Gross Revenue Report for a Baya Bar franchise?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
Gross Revenue does not include gift card purchases, at the time of purchase, but Gross Revenue does include the redemption amount of purchases made by gift card.
- 6.1.3 Gross Revenue Reports. 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.
Source: Item 22 — CONTRACTS (FDD page 56)
What This Means (2024 FDD)
According to Baya Bar's 2024 Franchise Disclosure Document, franchisees must furnish the franchisor with a Gross Revenue Report each week. This report must be submitted on the Tuesday following the close of each calendar week, which runs from Monday through Sunday. The report must detail the franchisee's Gross Revenue generated at or from the Franchised Business, including revenue made from the rights granted under the franchise agreement during that specific period.
The specific form and content of the Gross Revenue Report are determined by Baya Bar and may change over time. Baya Bar also reserves the right to implement a point-of-sale (POS) system that franchisees may be required to use. If a POS system is in place, franchisees may be required to submit the Gross Revenue Report through an electronic data transfer via the POS system, following the schedule specified by Baya Bar.
Along with the Gross Revenue Report, franchisees must pay the Royalty Fee and Brand Fund Contribution. If a franchisee fails to report Gross Revenues on time, Baya Bar can collect 120% of the last Royalty Fee payable, in addition to late fees and interest. Baya Bar will reconcile the amounts once the Gross Revenues are reported. Baya Bar also retains the right to modify the method and frequency of collecting the Royalty Fee and Brand Fund Contribution, providing franchisees with 45 days' prior notice.