When is the weekly royalty fee due for a Devon Creek franchise?
Devon_Creek Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Royalty Fee | The greater of: 6.0% of Gross Revenue for the first $1 million in Gross Revenues; | Paid Weekly on Wednesdays for the week prior | Payable to us. See note 1 and 2. |
Source: Item 6 — OTHER FEES (FDD pages 8–16)
What This Means (2024 FDD)
According to the 2024 Devon Creek Franchise Disclosure Document, the weekly royalty fee is due every Wednesday for the previous week's gross revenue. The royalty fee is a percentage of the gross revenue, and the percentage varies based on the total gross revenue per year.
For a Devon Creek franchise, the royalty fee structure is tiered. If the gross revenue is $0 to $1,000,000 per year, the royalty fee is 6% of the gross revenue generated weekly. If the gross revenue is $1,000,000 to $1,500,000, the royalty fee is 5% of the gross revenue generated weekly. If the gross revenue is $1,500,000 or more, the royalty fee is 4% of the gross revenue generated weekly.
It's important to note that if a Devon Creek franchisee does not report any sales in a week, Devon Creek will collect 120% of the last royalty fee collected and settle the balance the next week in which revenue is reported. Devon Creek requires franchisees to set up authorization at their bank to allow them to electronically transfer funds from the franchisee's bank account to Devon Creek's bank account. Interest and late fees will apply to any late payments or electronic funds transfer requests denied due to insufficient funds.