How often is the Brand Fund Contribution calculated for a Baya Bar franchise?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
13.3.1 Franchisor has established a national Brand Fund (the "Brand Fund") on behalf of the System for national advertising and marketing. Franchisee is required to contribute an amount equal to one percent (1%) of the Gross Revenue generated weekly by Franchisee's Franchised Business to the Brand Fund ("Brand Fund Contribution"). Franchisor reserves 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.
Source: Item 22 — CONTRACTS (FDD page 56)
What This Means (2024 FDD)
According to Baya Bar's 2024 Franchise Disclosure Document, franchisees are required to contribute to the Brand Fund, with the contribution calculated weekly. The Brand Fund contribution is equal to one percent (1%) of the Gross Revenue generated by the franchisee's Baya Bar location.
Baya Bar retains the right to increase the Brand Fund Contribution amount up to a maximum of three percent (3%) of Gross Revenue. Payments to the Brand Fund are made in the same manner and at the same time as royalty fees.
If a Baya Bar franchisee fails to report Gross Revenues on time, Baya Bar will collect one hundred twenty percent (120%) of the last Brand Fund Contribution payable, in addition to late fees and interest. However, Baya Bar will reconcile the amounts when the Gross Revenues are eventually reported.