When is the Big Apple Bagels royalty fee due?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
- b. Royalty Fee. Franchisee agrees to pay to Franchisor, via electronic bank draft as described below, a weekly royalty fee in the amount of five percent (5%) of the Gross Revenues of the BAGELS Store (as defined in Paragraph 8.c. hereof). The royalty fee shall be due on each Wednesday for the preceding "Reporting Week" (Monday through Sunday).
Source: Item 22 — CONTRACTS (FDD pages 86–87)
What This Means (2025 FDD)
According to Big Apple Bagels' 2025 Franchise Disclosure Document, the royalty fee is due each Wednesday. This fee covers the preceding "Reporting Week," which runs from Monday through Sunday. Big Apple Bagels franchisees must pay this royalty fee, which is 5% of the BAGELS Store's gross revenues, via electronic bank draft.
Big Apple Bagels requires franchisees to authorize them to withdraw the royalty payments from the franchisee's bank account. This ensures timely payments and reduces the administrative burden for both the franchisee and the franchisor. Franchisees should ensure they have sufficient funds in their designated bank account to cover the weekly royalty payments to avoid potential penalties or disruptions.
If a Big Apple Bagels franchisee fails to report gross revenues by the stated deadline, they will incur a fee of $10 per day, starting on the eighth day after the due date, until the default is resolved. Additionally, failure to pay the royalty fee can result in a penalty of $100 per day, beginning on the fifteenth day from the date the payment was due, until the payment is made. These monetary fees are in addition to any other remedies available to Big Apple Bagels under the Franchise Agreement or by law, and late payments will also accrue interest at a rate of 2% per month or the highest contract rate allowed by local law, whichever is lower.