How often are Baya Bar royalties billed to franchisees?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
The Company has established a marketing fund to promote the Baya Bar System, Baya Bar Shops and he products and services offered by Baya Bar Shops and the provision of local, regional, national and/or international advertising, marketing, publicity, and promotional activity relating to the Company's business. The marketing fee is collected weekly and is 1% of the franchisee's gross revenue.
Source: Item 23 — RECEIPTS (FDD pages 56–189)
What This Means (2024 FDD)
According to Baya Bar's 2024 Franchise Disclosure Document, franchisees are required to pay a marketing fee, which functions similarly to a royalty, on a weekly basis. This marketing fee is 1% of the franchisee's gross revenue.
This weekly collection of the marketing fee means that Baya Bar franchisees must maintain diligent record-keeping of their gross revenue to ensure accurate and timely payments. This frequent payment schedule could impact the franchisee's cash flow management, requiring them to allocate funds for this fee each week.
In the franchise industry, royalty or marketing fees are typically collected monthly, so Baya Bar's weekly collection is more frequent than the norm. Prospective franchisees should consider the implications of this weekly payment schedule on their operational and financial planning.