What were the estimated royalty fees for Desi District LLC?

According to Desi District's 2024 Franchise Disclosure Document, the estimated royalty fees for company-owned locations are detailed. For Desi District LLC, which operates as an Eatery & Market, the gross sales were $7,526,994.07, and the estimated royalty fees were $301,079.76. For Premier Meat Bazaar 423 Inc, an Eatery, gross sales amounted to $2,050,736.60 with estimated royalty fees of $82,029.46. Desi District Plano, another Eatery, had gross sales of $545,663.83 and estimated royalty fees of $21,826.55. Premier Eldorado Inc, operating as an Eatery & Market, reported gross sales of $6,851,280.85 and estimated royalty fees of $274,051.23. Lastly, Desi Eats LLC, also an Eatery & Market, showed gross sales of $2,567,600.44 and estimated royalty fees of $102,704.02.

These figures provide a glimpse into the potential royalty fees a franchisee might expect based on the gross sales of different Desi District locations. The royalty fees appear to vary based on the sales volume and potentially the type of franchise (Eatery vs. Eatery & Market). A prospective franchisee can use this data to estimate their potential royalty obligations, although it's important to note that these are estimates from company-owned locations and may not directly translate to franchised locations.

It is crucial for potential franchisees to understand the exact formula or percentage used to calculate royalty fees, as this information is not explicitly provided in this excerpt. Further investigation into Item 6 of the FDD, which typically outlines fees, would be beneficial. Additionally, discussing these figures with existing franchisees can provide valuable insights into real-world royalty payments and how they correlate with gross sales.