What is the method of payment for the Royalty Fee for a Devon Creek franchise?
Devon_Creek Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee agrees to pay Franchisor, monthly throughout the Term, a royalty fee as set forth in Attachment 1 to the Franchise Agreement (the "Royalty Fee").
If Franchisee fails to achieve the minimum Gross Revenue as defined in Attachment 1 to the Franchise Agreement, Franchisor may collect from Franchisee a Royalty equal to what Franchisee would have paid had Franchisee achieved the minimum gross revenue ("Minimum Gross Revenue").
The term "Gross Revenue" includes all revenues and income from any source derived or received by Franchisee from, through, by or on account of the operation of the Franchised Business or made pursuant to the rights granted hereunder, including but not limited, any and all other revenues received using Franchisor's trademarks, methods, operations and/or trade secrets whether received in cash, in services, in kind, from barter and/or exchange, on credit (whether or not payment is actually received) or otherwise.
Gross Revenues also include all proceeds from any business interruption insurance.
Source: Item 22 — CONTRACTS (FDD page 45)
What This Means (2024 FDD)
According to the 2024 Devon Creek Franchise Disclosure Document, the Royalty Fee is paid monthly throughout the term of the agreement. The specific amount of the Royalty Fee is detailed in Attachment 1 of the Franchise Agreement.
If a Devon Creek franchisee fails to achieve the minimum Gross Revenue, as defined in Attachment 1 of the Franchise Agreement, Devon Creek may collect a Royalty equal to what the franchisee would have paid had they achieved the minimum gross revenue. Gross Revenue includes all revenues and income from any source derived from the operation of the franchised business, including revenues received using Devon Creek's trademarks, methods, and trade secrets, whether received in cash, services, or on credit.
Gross Revenues also include all proceeds from any business interruption insurance. Prospective franchisees should carefully review Attachment 1 to fully understand how the Royalty Fee is calculated and the implications of not meeting the minimum Gross Revenue requirements.