What are the different payment schedules for GRM/GRT Royalty for Beverly Anns Cookie as detailed in Item 6?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
| GRM/GRT Royalty | GRM/GRT Royalty | GRM/GRT Royalty | |
|---|---|---|---|
| Time Total Royalty | Schedule | Schedule | Schedule |
| Period* | (If you make 3 installment | (If you make 6 installment | (If you make 9 installment |
| payments per year) | payments per year) | payments per year) | |
| Years 1-2 $3,000 | June 30: $1,000 July 31: $1,000 August 31: $1,000 | May 31: $500 June 30: $500 July 31: $500 August 31: $500 September 30: $500 October 31: $500 | April 30: $333 May 31: $333 June 30: $334 July 31: $333 August 31: $333 September 30: $334 October 31: $333 November 30: $333 December 31: $334 |
| Years 3-6 $4,000 | June 30: $1,333 July 31: $1,333 August 31: $1,334 | May 31: $666 June 30: $666 July 31: $667 August 31: $667 September 30: $667 October 31: $667 | April 30: $444 May 31: $445 June 30: $444 July 31: $445 August 31: $444 September 30: $445 October 31: $444 November 30: $445 December 31: $444 |
| Years 7-10 $5,000 | June 30: $1,666 July 31: $1,667 August 31: $1,667 | May 31: $833 June 30: $833 July 31: $833 August 31: $833 September 30: $834 October 31: $834 | April 30: $556 May 31: $555 June 30: $556 July 31: $555 August 31: $556 September 30: $555 October 31: $556 November 30: $555 December 31: $556 |
| (plus any | |||
| interim | |||
| period | |||
| between | |||
| franchise | |||
| agreements, | |||
| if | |||
| applicable) |
What This Means (2025 FDD)
According to Beverly Anns Cookie's 2025 Franchise Disclosure Document, franchisees have the option to pay their GRM/GRT royalty annually or through installment payments. Specifically, Beverly Anns Cookie offers three installment payment schedules: three-month, six-month, or nine-month. The franchisee must select their preferred schedule before the annual convention; otherwise, Beverly Anns Cookie will choose the schedule for them.
The GRM/GRT royalty varies depending on the number of years the franchisee has been in operation. For years 1-2, the total royalty is $3,000. If a franchisee chooses the three-month installment plan, they will pay $1,000 on June 30th, July 31st, and August 31st. With the six-month plan, payments of $500 are due on May 31st, June 30th, July 31st, August 31st, September 30th, and October 31st. The nine-month schedule requires payments of $333 on April 30th, May 31st, June 30th, July 31st, August 31st, September 30th, October 31st, November 30th, and $334 on December 31st.
For years 3-6, the total royalty increases to $4,000. Under the three-month installment plan, franchisees will pay $1,333 on June 30th, $1,333 on July 31st, and $1,334 on August 31st. The six-month plan involves payments of $666 due on May 31st and June 30th, $667 due on July 31st, August 31st, September 30th, and October 31st. The nine-month schedule requires payments of $444 on April 30th, June 30th, July 31st, August 31st, October 31st, November 30th, and December 31st, with payments of $445 due on May 31st and September 30th.
In years 7-10 (including any interim periods between franchise agreements), the total royalty is $5,000. The three-month installment plan consists of payments of $1,666 on June 30th and $1,667 on both July 31st and August 31st. The six-month plan requires payments of $833 on May 31st, June 30th, July 31st, August 31st, and $834 on September 30th and October 31st. Finally, the nine-month schedule involves payments of $556 on April 30th, June 30th, July 31st, August 31st, October 31st, November 30th, and December 31st, with payments of $555 due on May 31st and September 30th. These royalty payment schedules provide flexibility for Beverly Anns Cookie franchisees to manage their cash flow.