How is the weekly royalty fee calculated 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.
- 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.
Source: Item 22 — CONTRACTS (FDD page 61)
What This Means (2025 FDD)
According to Brueggers Bagels' 2025 Franchise Disclosure Document, the weekly royalty fee is 5% of the Gross Sales of the Bakery for the preceding Accounting Week. An Accounting Week begins on Wednesday and ends on the following Tuesday, unless Brueggers Bagels designates otherwise in writing.
Gross Sales includes the amount received for all sales of food, beverages, and other products sold in or from the Bakery, whether for cash, credit, or other means. This includes sales and services where the order originated at the Bakery, regardless of where delivery or performance is made.
However, Gross Sales excludes certain items: non-branded, non-proprietary merchandise (e.g., newspapers); refunds to customers previously included in Gross Sales; approved coupons and discounts (only the net amount received is included); sales, excise, or similar taxes collected from customers and paid out; and the value of meals provided to employees working at the Bakery.