What is the maximum amount the weekly Technology Fee for a Devon Creek franchise can increase to?
Devon_Creek Franchise · 2024 FDDAnswer from 2024 FDD Document
Section 12.3)
You are required to pay a weekly one hundred twenty-five-dollar ($125) technology fee ("Technology Fee"). We reserve the right to increase the Technology Fee by ten percent (10%) annually, not to
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 24–32)
What This Means (2024 FDD)
According to Devon Creek's 2024 Franchise Disclosure Document, franchisees are required to pay a weekly technology fee of $125. Devon Creek retains the right to increase this Technology Fee by 10% annually. However, the weekly Technology Fee will not exceed $500.
This means that a prospective Devon Creek franchisee should anticipate paying $125 per week initially for the Technology Fee. This fee could increase over time, but is capped at $500 per week. The 10% annual increase could occur each year, but would stop once the fee reaches the maximum of $500 per week.
It is important for potential franchisees to factor in this escalating cost when projecting their operating expenses. They should also inquire about what specific technology and services are covered by this fee to assess its value and impact on their business operations.