What is the royalty fee for a Devon Creek franchise after it has been operating for more than 24 months?

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. For the initial 12 months (months 0-12), the royalty fee is 4% of the gross revenue generated weekly. This increases to 5% of the gross revenue generated weekly for months 13 through 24.

After the franchise has been operating for more than 24 months (25+), the royalty fee increases again to 6% of the gross revenue generated weekly. This means that as a Devon Creek franchise matures, the percentage of revenue paid to the franchisor increases.

For a prospective Devon Creek franchisee, it's important to factor in these increasing royalty fees when projecting profitability. While the initial lower royalty rate can help in the early stages of the business, the higher rate will impact margins as the business grows. Franchisees should carefully consider their revenue projections and expense management to ensure they can maintain profitability with the higher royalty fee.