When is the Royalty fee due for a Burneys Sweets More franchise?
Burneys_Sweets_More Franchise · 2025 FDDAnswer from 2025 FDD Document
| Name of Fee1 | Amount | Due Date | Remarks |
|---|---|---|---|
| Royalty2 | 3% of monthly Gross Sales3 | Payment made by electronic funds transfer (EFT) on the 15th day of each month. Upon 30 days' notice, the royalties can be electronically drafted from your bank account. | Royalty can be raised by us to be as high as 5% of monthly Gross Sales. |
Source: Item 6 — OTHER FEES (FDD pages 11–17)
What This Means (2025 FDD)
According to Burneys Sweets More's 2025 Franchise Disclosure Document, the royalty fee is due on the 15th day of each month. The payment is to be made via electronic funds transfer (EFT). The FDD also states that Burneys Sweets More can electronically draft the royalties from the franchisee's bank account, provided they give 30 days' notice.
The standard royalty fee is 3% of monthly Gross Sales, but Burneys Sweets More retains the right to increase this royalty up to 5% of monthly Gross Sales. Gross Sales include all revenue from the shop's operations, including services and product sales, whether cash or credit. It also includes proceeds from business interruption insurance. However, Gross Sales do not include tips, sales taxes, gift card redemptions, or sales to other franchisees and company-owned shops. Royalties on gift cards are assessed when the gift card is sold.
Franchisees should be aware of the potential for royalty increases and factor this into their financial planning. The electronic funds transfer requirement means franchisees must ensure sufficient funds are available in their account to avoid insufficient fund fees, which are $25 plus any fees charged to Burneys Sweets More for uncollected funds. Franchisees should also carefully track their Gross Sales according to the FDD's definition to ensure accurate royalty payments.