What is the royalty fee for a Devon Creek franchise during months 13-24 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 months 13 through 24, a Devon Creek franchisee will pay a royalty fee of 5% of the Gross Revenue generated weekly by their franchise.

This means that as a franchisee's business matures beyond the initial startup phase, the royalty fee increases from the initial rate. This increase in royalty fees will impact the franchisee's profit margin, as a larger percentage of their weekly gross revenue will be allocated to royalty payments.

It's important for prospective franchisees to factor this escalating royalty structure into their financial projections and business plans. Understanding how the royalty fee changes over time is crucial for accurately forecasting expenses and determining the long-term profitability of a Devon Creek franchise. Franchisees should also be aware that there is a minimum annual royalty fee that must be paid, regardless of gross revenue.