What constitutes an 'Accounting Week' for royalty calculations at 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 weekly royalty fees. Unless Brueggers Bagels specifies otherwise in writing, an Accounting Week begins on Wednesday and concludes on the following Tuesday.
This definition is important because Brueggers Bagels franchisees must pay a weekly royalty fee equivalent to five percent (5%) of the Bakery's Gross Sales from the preceding Accounting Week. Therefore, accurately tracking sales within this Wednesday-to-Tuesday timeframe is essential for franchisees to calculate and remit the correct royalty payments.
The franchisor also requires franchisees to designate a commercial bank account for electronic fund transfers to cover royalty fees and marketing contributions. Brueggers Bagels will automatically withdraw the appropriate amounts weekly, based on the Gross Sales reported for the preceding Accounting Week. Franchisees must ensure sufficient funds are available in the designated account to avoid late fees or potential termination of the franchise agreement.