When is the weekly royalty fee due to Desi District Franchise Group?
Desi_District Franchise · 2024 FDDAnswer from 2024 FDD Document
4.2 Royalty Fee. Franchisee shall pay Desi District Franchise Group a weekly royalty fee (the "Royalty Fee") equal to 4% of Gross Sales. The Royalty Fee for any given week is due on Tuesday of the following week.
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2024 FDD)
According to Desi District's 2024 Franchise Disclosure Document, franchisees are required to pay a weekly royalty fee, which is 4% of gross sales. This royalty fee is due to Desi District Franchise Group on Tuesday of the following week.
This means that a Desi District franchisee must calculate their gross sales for the previous week and remit 4% of that amount to Desi District by the following Tuesday. This ongoing payment is a standard component of most franchise agreements, providing the franchisor with a continuous revenue stream based on the franchisee's sales performance.
Furthermore, the FDD specifies that franchisees must report their weekly gross sales to Desi District by Tuesday of the following week. If a franchisee fails to report their weekly gross sales, Desi District has the right to withdraw estimated royalty fees equal to 125% of the last gross sales reported. The actual fees will be reconciled after the franchisee reports their gross sales. Desi District also has the right to remotely access the franchisee's point-of-sale system to calculate gross sales.