How long is the AE Royalty due for a Beverly Anns Cookie franchise?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
If you purchase Additional Equipment, you will be required to pay additional royalty fees per piece of Additional Equipment that you purchase ("AE Royalty"). The AE Royalty will depend on the type of Additional Equipment and will be the then-current rate at the time you enter into the Additional Equipment Amendment. The AE Royalty will be due for as long as you own the Additional Equipment. For this Franchise Agreement, all references to Royalty shall include any AE Royalty unless otherwise noted.
Source: Item 23 — RECEIPTS (FDD pages 57–235)
What This Means (2025 FDD)
According to Beverly Anns Cookie's 2025 Franchise Disclosure Document, if a franchisee purchases Additional Equipment, they are obligated to pay additional royalty fees, known as AE Royalty, for each piece of Additional Equipment acquired. The specific AE Royalty rate is determined at the time the franchisee enters into the Additional Equipment Amendment.
The key factor is that the AE Royalty is due for as long as the franchisee owns the Additional Equipment. This means that the obligation to pay the AE Royalty continues for the entire duration that the franchisee possesses the Additional Equipment, regardless of how long that may be.
For a prospective Beverly Anns Cookie franchisee, this implies a long-term financial commitment tied to any Additional Equipment purchases. It's crucial to carefully evaluate the costs and benefits of acquiring such equipment, considering the ongoing AE Royalty payments. This contrasts with the standard royalty, which may be subject to change upon renewal of the franchise agreement, but the AE Royalty remains tied to equipment ownership.