How must the Big Apple Bagels royalty fee be paid?
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, franchisees are required to pay a weekly royalty fee. This fee is 5% of the store's Gross Revenues, as defined in the franchise agreement.
The royalty fee is due each Wednesday for the preceding 'Reporting Week,' which runs from Monday through Sunday. Franchisees must make these payments via electronic bank draft. This method ensures timely and consistent payments to Big Apple Bagels.
Gross Revenues include all gross sales and business receipts, including direct or indirect barter transactions, catering accounts, proceeds from business interruption insurance, and wholesale accounts. Exclusions from Gross Revenues are limited to sales, use, or service taxes collected from customers and remitted to the appropriate taxing authority, and any bona fide customer refunds, approved rebates, discounts, and allowances. Big Apple Bagels may also poll the franchisee's Point-of-Sale (POS) system to verify gross revenues.