When is the royalty fee due for a Bens Soft Pretzels franchise?

According to Bens Soft Pretzels's 2025 Franchise Disclosure Document, the royalty fee, which is 6% of Gross Sales, is payable weekly. Specifically, the week ends on Sunday, and the royalty fee is due on Monday the following week through electronic funds transfer. Gross Sales includes all sales or revenues derived directly or indirectly from the store, including on-premises sales and monies derived at or away from the store, whether from cash, check, credit and debit card, trade credit or credit transactions, including business interruption insurance proceeds and service charges in lieu of gratuity. Gross Sales excludes sales taxes collected from customers and paid to the appropriate taxing authority and the amount of all coupons redeemed at the store.

This weekly payment schedule is fairly typical in the franchise industry, as it allows franchisors to maintain a consistent cash flow and promptly address any financial discrepancies. The electronic funds transfer requirement ensures timely and accurate payments, reducing the administrative burden for both the franchisee and Bens Soft Pretzels.

For a prospective franchisee, understanding the definition of Gross Sales is crucial, as it forms the basis for calculating the royalty fee. Accurately tracking and reporting all sales, while excluding allowable deductions like sales taxes and redeemed coupons, is essential for compliance with the franchise agreement. Failing to remit the royalty fee on time could result in penalties or even termination of the franchise agreement, so adhering to the weekly payment schedule is of utmost importance.