factual

What other payments are due to Baya Bar at the same time as the Royalty Fee?

Baya_Bar Franchise · 2024 FDD

Answer from 2024 FDD Document

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.

Source: Item 22 — CONTRACTS (FDD page 56)

What This Means (2024 FDD)

According to Baya Bar's 2024 Franchise Disclosure Document, franchisees must pay a Brand Fund Contribution at the same time as the Royalty Fee. The Brand Fund Contribution is initially set at one percent of the franchise's weekly Gross Revenue, but Baya Bar retains the right to increase this contribution up to a maximum of three percent of Gross Revenue.

Both the Royalty Fee and the Brand Fund Contribution are due when the franchisee submits their Gross Revenue Report. Franchisees are required to furnish Baya Bar with a Gross Revenue Report on the Tuesday following the close of each calendar week (Monday through Sunday). This report must detail the Gross Revenue generated by the franchise during that period.

Baya Bar may request that franchisees authorize automatic electronic funds transfers or ACH payments for both the Royalty Fee and the Brand Fund Contribution, along with any other sums due to Baya Bar. Failure to allow these electronic transfers is considered a material breach of the Franchise Agreement. Baya Bar also retains the right to modify the method and frequency of collecting the Royalty Fee and Brand Fund Contribution, provided they give the franchisee 45 days' prior notice.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.