How is an 'Accounting Week' defined for the purpose of royalty payments for a Brueggers Bagels franchise?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
- 5.2. Royalty. You must pay us a weekly royalty fee in an amount equal to five percent (5%) of the Gross Sales of the Bakery for the preceding Accounting Week. Unless otherwise designated by us in writing, an "Accounting Week" begins on Wednesday and ends on the following Tuesday.
Source: Item 22 — CONTRACTS (FDD page 61)
What This Means (2025 FDD)
According to Brueggers Bagels's 2025 Franchise Disclosure Document, an 'Accounting Week' is defined for the purpose of calculating royalty fees. The standard accounting week begins on Wednesday and concludes on the following Tuesday, unless Brueggers Bagels specifies otherwise in writing.
Brueggers Bagels franchisees are obligated to pay a weekly royalty fee equivalent to 5% of the Bakery's Gross Sales from the preceding Accounting Week. This royalty payment, along with the Marketing Contribution, is typically collected via electronic funds transfer from a designated bank account.
It is the franchisee's responsibility to ensure that sufficient funds are available in the designated account to cover the royalty fees, Brand Marketing Fund contributions, and any other fees payable to Brueggers Bagels or its affiliates. Failure to maintain adequate funds or to make timely payments can result in late fees, interest charges, and potentially, termination of the Franchise Agreement.