When is the royalty fee due for a Big Apple Bagels franchise, and for what period does it cover?
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).
- f. Electronic Bank Draft Plan.
Franchisee shall make payments of the royalty fee, Marketing Fund contributions, and all other payments due Franchisor through an Electronic Bank Draft Plan on a bank account Franchisee is required to establish and maintain for the purpose of making payments to Franchisor.
Franchisee shall execute such documents as may be required from time to time by Franchisor to permit Franchisor to withdraw from Franchisee's general operating checking account the amounts due Franchisor.
- b.
Failure to Report Gross Revenues.
Franchisee shall pay Franchisor a fee of Ten Dollars ($10) per day, beginning on the eighth (8th) day from the date performance is due, up through and including the day the default is cured, if he fails to report the Gross Revenues of the BAGELS Store as set forth in Subparagraph 11.b.i. by the stated deadline.
- d.
Failure to Pay Royalty Fees or Marketing Fund contributions.
Franchisee shall pay Franchisor a fee of One Hundred Dollars ($100) per day, beginning on the fifteenth (15th) day from the date performance is due, up through and including the day the default is cured, if Franchisee is in default in the payment of the royalty fee required under Subparagraph 8.b. or Marketing Fund contribution under Subparagraph 10.a.i.
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 5% of the Gross Revenues of the BAGELS Store. This fee is due each Wednesday and covers the preceding "Reporting Week," which runs from Monday through Sunday.
Big Apple Bagels requires that franchisees pay this royalty fee via electronic bank draft. Franchisees must authorize Big Apple Bagels to withdraw the amounts due from their designated bank account. This ensures timely and consistent payment of the royalty fee.
Failure to report Gross Revenues by the stated deadline results in a fee of $10 per day, beginning on the eighth day after the due date, until the default is resolved. Similarly, failure to pay royalty fees results in a fee of $100 per day, beginning on the fifteenth day from the date performance is due, until the default is cured. These monetary fees for non-compliance are in addition to other remedies available to Big Apple Bagels, such as termination of the franchise agreement.