What is the frequency of Gross Revenue Reports for a Devon Creek franchise?
Devon_Creek Franchise · 2024 FDDAnswer from 2024 FDD Document
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.
Franchisee's failure to allow electronic funds transfers on an ongoing basis is a material breach of this Agreement.
If Franchisee fails to timely report Gross Revenue, then, in addition to a late fee and interest pursuant to Sections 6.2 and 6.3 hereof, Franchisor shall collect one hundred twenty percent (120%) of the last Royalty Fee payable.
Franchisor shall reconcile amounts when Gross Revenues are reported.
Source: Item 22 — CONTRACTS (FDD page 45)
What This Means (2024 FDD)
According to Devon Creek's 2024 Franchise Disclosure Document, franchisees are required to furnish the franchisor with a Gross Revenue Report on Wednesdays of each calendar week for the prior week. This report must detail the franchisee's Gross Revenue generated at or from the Franchised Business, or made in accordance with the rights granted under the franchise agreement, during the immediately preceding calendar week.
The Gross Revenue Report must be in a format and contain information as prescribed by Devon Creek from time to time. Devon Creek may require franchisees to submit or grant access to these reports electronically through the computer information systems that Devon Creek mandates for the operation of the Franchised Business.
Along with submitting the Gross Revenue Report, the Devon Creek franchisee must pay the Royalty Fee and the Brand Development Fund Contribution that are due. Devon Creek may also request franchisees to authorize automatic electronic fund transfers from their business bank accounts for these fees and other sums owed to Devon Creek. Failure to allow electronic fund transfers is considered a material breach of the Franchise Agreement. If a franchisee fails to report Gross Revenues on time, Devon Creek can collect 120% of the last Royalty Fee payable, in addition to late fees and interest, and will reconcile the amounts when the revenues are eventually reported.