What is the royalty fee for a Devon Creek franchise after 25 months of operation?

According to Devon Creek's 2024 Franchise Disclosure Document, the royalty fee structure is based on the number of months since the franchise began operations. During the initial 12 months (months 0-12), the royalty fee is 4% of the gross revenue generated weekly. This increases to 5% of weekly gross revenue for months 13 through 24.

After 24 months, specifically from month 25 onwards, the royalty fee increases again. Devon Creek franchisees will pay 6% of the gross revenue generated weekly by their franchise. This means that as a franchisee's business matures beyond the initial two years, a larger percentage of their weekly revenue will be allocated to royalty payments.

It's important for prospective Devon Creek franchisees to factor this escalating royalty structure into their financial projections. While the initial lower royalty rates can help with cash flow during the early stages of the business, the increase to 6% after 25 months will impact profitability and should be carefully considered in long-term financial planning.