How does a Beverly Anns Cookie franchisee stop paying the Additional Equipment Royalty?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee must present evidence to Franchisor, as required by Franchisor in its sole discretion, that Franchisee no longer owns the Additional Equipment prior to Franchisee being excused from paying any further Additional Equipment Royalties. Franchisee shall not be entitled to receive a refund on any Additional Equipment Royalty paid. Franchisee acknowledges and agrees that the Additional Equipment Royalty may increase upon renewal of the Franchise Agreement and agrees to pay Franchisor the thencurrent Royalty amount upon any such renewal.
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
According to the 2025 Beverly Anns Cookie Franchise Disclosure Document, a franchisee must provide evidence to Beverly Anns Cookie that they no longer own the additional equipment. The form of evidence required is determined at the sole discretion of Beverly Anns Cookie. Once the franchisee proves they no longer own the equipment, they will be excused from future additional equipment royalty payments.
It is important to note that franchisees are not entitled to a refund of any additional equipment royalties they have already paid to Beverly Anns Cookie. Furthermore, the additional equipment royalty amount may increase upon renewal of the franchise agreement, and the franchisee agrees to pay the then-current royalty amount if they renew.
This policy means that franchisees need to carefully consider the long-term costs and benefits of purchasing additional equipment, as they will be responsible for ongoing royalty payments as long as they own the equipment, and they will not receive a refund of past royalties if they later decide to dispose of the equipment. Franchisees should also be aware that the royalty rate could increase at the time of renewal, impacting their future costs.