How is the Misappropriated Brand Manual Fee determined for a Beverly Anns Cookie franchise?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
ology Fee.
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- Misappropriated Brand Manual Fee. This fee is determined by taking our total revenue from our previous fiscal year, multiplied by the fraction which results from taking one divided by the current number of Beverly Ann's Cookie franchisees as of the date of the misappropriation, except that this fee will not, under any circumstances, be less th
Source: Item 6 — OTHER FEES (FDD pages 15–24)
What This Means (2025 FDD)
According to the 2025 Beverly Anns Cookie Franchise Disclosure Document, the Misappropriated Brand Manual Fee is calculated based on a formula that considers the franchisor's total revenue from the previous fiscal year. This revenue is then multiplied by a fraction. The fraction is derived by dividing one by the current number of Beverly Anns Cookie franchisees as of the date the misappropriation occurred.
However, the FDD stipulates a minimum amount for this fee. Even if the calculation based on the formula results in a lower figure, the Misappropriated Brand Manual Fee will not be less than $30,000. This minimum threshold ensures that Beverly Anns Cookie receives a substantial payment in the event of a brand manual misappropriation, regardless of the revenue and franchisee count at the time.
For a prospective Beverly Anns Cookie franchisee, this means that misappropriating the brand manual could result in a significant financial penalty. The fee could be substantial, especially if the franchisor's revenue is high. The franchisee should be aware of the importance of protecting the brand manual and adhering to the terms of the franchise agreement to avoid incurring this fee. The minimum fee of $30,000 also serves as a deterrent against unauthorized use or distribution of the brand manual.