When is the Bb.Q Chicken Royalty Fee due each month?
Bb_Q_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
During the term of this Agreement, you shall pay to us, in partial consideration for the rights herein granted, a continuing monthly royalty fee ("Royalty Fee") in an amount equal to five percent (5%) of Gross Sales. Such royalty fee shall be due and payable on the fifteenth (15th) of each month via electronic funds transfer ("Accounting Period") based on the Gross Sales for the preceding month (the first such Accounting Period beginning on the Opening Date and ending on the Sunday that corresponds to the end of the thencurrent Accounting Period as determined in accordance with our Manuals). If the fifteenth (15th) of any month is not a business day, then the Royalty Fee shall be due on the next business day. A business day for the purpose of this Agreement means any day other than Saturday, Sunday or the following national holidays: New Year's Day, Martin Luther King Day, Presidents' Day, Memorial Day, Independence Day, Labor Day, Columbus Day, Veterans Day, Thanksgiving Day and Christmas Day.
- 4.2.1 Alternative Royalty Fee.
In the event that (i) Franchisee sells alcoholic beverages and (ii) any law in effect in the Territory disallows the payment or collection of a royalty fee for sales of alcohol, then the definition of Gross Sales set forth in Section 6.1.2 is revised to specifically exclude alcohol sales, and Franchisor and Franchisee shall increase the percentage rate used to calculate the Royalty Fee to a level such that the Royalty Fee payable by Franchisee equals that which would have been payable by Franchisee had alcohol sales been included in Gross Sales.
- 4.2.2 Each such Royalty Fee shall be preceded by a royalty report itemizing the Gross Sales for the preceding Accounting Period ("Royalty Report") and any other reports required hereunder.
Notwithstanding the foregoing, you shall provide us with such Gross Sales information on the First Monday of each month following the Accounting Period (or next business day if the Monday is not a business day).
As stated herein, we have the right to poll your point-of-sale system directly to obtain such Gross Sales information, but this does not diminish your responsibility to provide us with the required Royalty Report.
Source: Item 23 — RECEIPTS (FDD pages 62–283)
What This Means (2025 FDD)
According to Bb.Q Chicken's 2025 Franchise Disclosure Document, the Royalty Fee, which is 5% of Gross Sales, is due on the fifteenth (15th) of each month via electronic funds transfer. This payment is based on the Gross Sales for the preceding month. The first accounting period begins on the Opening Date and ends on the Sunday that corresponds to the end of the then-current Accounting Period as determined in accordance with Bb.Q Chicken's Manuals.
If the fifteenth of the month falls on a non-business day (Saturday, Sunday, or a specified national holiday), the Royalty Fee is due on the next business day. The national holidays recognized are New Year's Day, Martin Luther King Day, Presidents' Day, Memorial Day, Independence Day, Labor Day, Columbus Day, Veterans Day, Thanksgiving Day, and Christmas Day.
Bb.Q Chicken franchisees must also provide Gross Sales information on the first Monday of each month following the Accounting Period, or the next business day if that Monday is a holiday. While Bb.Q Chicken has the right to directly access the franchisee's point-of-sale system to obtain Gross Sales information, the franchisee remains responsible for providing the required Royalty Report.
In the event that a Bb.Q Chicken franchisee sells alcoholic beverages and any law in effect in the Territory disallows the payment or collection of a royalty fee for sales of alcohol, then the definition of Gross Sales is revised to specifically exclude alcohol sales, and Bb.Q Chicken and Franchisee shall increase the percentage rate used to calculate the Royalty Fee to a level such that the Royalty Fee payable by Franchisee equals that which would have been payable by Franchisee had alcohol sales been included in Gross Sales.