factual

How often must a Bft franchisee pay the royalty fee?

Bft Franchise · 2025 FDD

Answer from 2025 FDD Document

A. Franchisor reserves the right to determine, from time to time, the frequency, intervals covered, and manner in which amounts owed to it or its affiliates must be paid. Currently all such amounts (including fees, interest, and other payments required under this Agreement) must be paid via automatic debit from Franchisee's point-of-sale operating account administered by the designated supplier of pointof-sale services on a weekly basis throughout the Term, subject to modification on reasonable written notice.

Source: Item 23 — RECEIPTS (FDD pages 79–265)

What This Means (2025 FDD)

According to Bft's 2025 Franchise Disclosure Document, the frequency of royalty fee payments is determined by Bft and is currently collected weekly. Bft requires all payments, including fees, interest, and other payments, to be made via automatic debit from the franchisee's point-of-sale operating account. This account is administered by Bft's designated supplier of point-of-sale services.

This weekly payment schedule is subject to modification, as Bft reserves the right to change the frequency and intervals of payments with reasonable written notice. This means that while franchisees currently pay royalty fees weekly, Bft can alter this schedule, providing franchisees with advance notice of any changes.

For a prospective Bft franchisee, this indicates a consistent, recurring financial obligation that must be factored into their cash flow management. The automatic debit system ensures timely payments but also requires franchisees to maintain sufficient funds in their designated account to avoid any penalties or disruptions. Franchisees should stay informed of any potential changes to the payment schedule by paying close attention to written notices from Bft.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.