How should a Devon Creek franchisee submit the Gross Revenue Report?
Devon_Creek Franchise · 2024 FDDAnswer from 2024 FDD Document
me Franchisee redeems the customer's voucher or allowance.
- 6.1.3 Gross Revenue Reports. Franchisee shall, on Wednesday's of each calendar weekly for the prior week, furnish Franchisor with a report showing Franchisee's Gross Revenue at or from the Franchised Business and/or made pursuant to the rights granted hereunder during the immediately prior calendar month (the "Gross Revenue Report"). The Gross Revenue Report shall be in such form and shall contain such information as Franchisor may from time to time prescribe. At Franchisor's discretion, Franchisee shall submit, or grant Franchisor access to, the Gross Revenue Report by an electronic transfer of data via the computer information systems ("Computer System") that Franchisor requires Franchisee to use in the operation of the Franchised Business.
- 6.1.4 Method of Payment. Franchisee shall, together with the submission of the Gross Revenue Report, pay Franchisor the Royalty Fee and the Brand Development Fund Contribution, as defined and more particularly described in Article 13, then due. At Franchisor's request, Franchisee must execute documents that allow Franchisor to automatically take the Royalty Fee and Brand Development Fund Contribution due as well as other sums due Franchisor, from business bank accounts via electronic funds transfers.
Source: Item 22 — CONTRACTS (FDD page 45)
What This Means (2024 FDD)
According to Devon Creek's 2024 Franchise Disclosure Document, franchisees must furnish the franchisor with a Gross Revenue Report every Wednesday for the prior week. This report details the franchisee's Gross Revenue from the Franchised Business and any revenue made through the rights granted in the franchise agreement during the previous calendar week. The report must be in a format and contain information as prescribed by Devon Creek.
Devon Creek has the discretion to require franchisees to submit, or grant access to, the Gross Revenue Report through electronic data transfer via the computer information systems that Devon Creek requires the franchisee to use for operating the Franchised Business.
Along with submitting the Gross Revenue Report, the franchisee must pay Devon Creek the Royalty Fee and the Brand Development Fund Contribution that are due. If a franchisee fails to report Gross Revenue on time, Devon Creek can collect 120% of the last Royalty Fee payable, in addition to late fees and interest. Devon Creek will reconcile amounts when Gross Revenues are reported.