When is the Royalty Fee payment due for a Brueggers Bagels franchise, and how must it be paid?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
n of the rights granted herein, you must pay us a non-refundable initial franchise fee of Thirty-Five Thousand Dollars ($35,000). The Initial Franchise Fee is payable when you execute the Franchise Agreement. The Initial Franchise Fee is deemed fully earned upon receipt by Franchisor, and is non-refundable.
- 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.
- 5.3. Marketing Contribution. You must make a weekly Marketing Contribution as specified in Section 14.2 below.
- 5.4. Payment Method. You must designate an account at a commercial bank of your choice (the "Account") for the payment of amounts due to us or our affiliates. You must furnish us and the bank with authorizations as necessary to permit us to make withdrawals from the Account by electronic funds transfer. Each week, we will transfer from the Account an amount equal to the royalty fees and NMF contribution due from you based on Gross Sales for the preceding week, as well as any other fees due to us or our affiliates. You agree to maintain sufficient funds in the Account at all times to cover all royalty fees, Brand Marketing Fund contributions and other fees payable to us or our affiliates. If funds in the Account are insufficient to cover the amounts payable at the time we make our weekly electronic funds transfer, the amount of the shortfall will be deemed overdue.
- 5.5. Interest and Late Fees. If any sums required to be paid by you to us under this Agreement are not received in full by us when due, we will assess a late fee of one hundred dollars ($100) for each week that any payment is delinquent. In addition, if any payment to us is overdue, you must pay us, in addition to the overdue amount, daily interest on the overdue amount from the date it became overdue until paid, at the rate of one and one-half percent (1.5%) per month or the maximum rate permitted by law, whichever is less. Interest shall be calculated on a daily basis. Inter
Source: Item 22 — CONTRACTS (FDD page 61)
What This Means (2025 FDD)
According to Brueggers Bagels's 2025 Franchise Disclosure Document, franchisees must pay a weekly royalty fee equal to 5% of the Bakery's Gross Sales for the preceding Accounting Week. Unless Brueggers Bagels designates otherwise in writing, an Accounting Week begins on Wednesday and ends on the following Tuesday.
Brueggers Bagels requires franchisees to designate an account at a commercial bank for payment of all amounts due to Brueggers Bagels or its affiliates. Franchisees must authorize Brueggers Bagels to make withdrawals from this account via electronic funds transfer. Each week, Brueggers Bagels will transfer the royalty fees and National Marketing Fund (NMF) contributions due, based on the Gross Sales for the preceding week, as well as any other fees owed.
It is the franchisee's responsibility to maintain sufficient funds in the designated account to cover all royalty fees, Brand Marketing Fund contributions, and other fees payable to Brueggers Bagels or its affiliates. If the funds are insufficient, the shortfall will be considered overdue. Brueggers Bagels will assess a late fee of $100 for each week that any payment is delinquent. Additionally, overdue payments will incur daily interest at a rate of 1.5% per month, or the maximum rate permitted by law, whichever is less. Failure to maintain sufficient funds or pay all amounts when due constitutes grounds for termination of the Franchise Agreement.