What is the total royalty due for Years 1-2 of a Beverly Anns Cookie franchise?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
Beginning on the opening date of your Beverly Ann's Business, and continuing for the term of this Franchise Agreement, including any interim period between franchise agreements, you agree to pay us the Royalty listed below annually in in Installment Payments ("GRM/GRT Royalty Schedule"):
Source: Item 6 — OTHER FEES (FDD pages 15–24)
What This Means (2025 FDD)
I am unable to calculate the total royalty due for Years 1-2 of a Beverly Anns Cookie franchise with the information provided in the 2025 Franchise Disclosure Document excerpts. While the excerpts discuss royalties in general, including a "GRM/GRT Royalty Schedule", the actual royalty amounts or schedule for the first two years are not specified. The excerpts do mention that royalty payments begin on the opening date of the Beverly Ann's Business and continue for the term of the Franchise Agreement. They also note that franchisees have the option to pay certain fees annually or in installment payments.
To fully understand the royalty obligations, a prospective Beverly Anns Cookie franchisee should carefully review the section of the FDD that details the specific royalty rates and payment schedules for new franchisees during their first two years of operation. This includes understanding how the royalty is calculated (e.g., as a percentage of gross sales) and when the payments are due.
It would also be prudent to inquire about any potential differences in royalty rates between new and successor franchise agreements, as the document indicates that successor agreements may have higher royalty rates. Understanding these details is crucial for accurately forecasting expenses and assessing the financial viability of the franchise.