What is the minimum annual royalty fee for a Devon Creek franchise after it has been operating for more than 48 months?
Devon_Creek Franchise · 2024 FDDAnswer from 2024 FDD Document
| Months since beginning operations | Minimum Annual Royalty |
|---|---|
| 0 –12 | $6,000 annually |
| 13 –24 | $10,000 annually |
| 25 –36 | $14,500 annually |
| 37 –48 | $21,500 annually |
| 48+ | $28,750annually |
Source: Item 23 — RECEIPT (FDD pages 45–141)
What This Means (2024 FDD)
According to Devon Creek's 2024 Franchise Disclosure Document, the minimum annual royalty fee for a franchise that has been operating for more than 48 months is $28,750. This minimum royalty payment is based on the length of time the franchise has been in operation, regardless of gross revenue.
In addition to the minimum annual royalty, Devon Creek also collects a royalty fee based on a percentage of gross revenue. After 25 months of operation, the royalty fee is 6% of the gross revenue generated weekly by the franchise.
This means that a Devon Creek franchisee will pay the greater of the minimum annual royalty fee or the percentage-based royalty fee. Franchisees should carefully consider these royalty obligations and factor them into their financial projections. It is important to note that these fees are ongoing expenses that will impact the profitability of the franchise.