When is the Marketing Fund contribution due for a Dickeys Barbecue Pit franchise?
Dickeys_Barbecue_Pit Franchise · 2024 FDDAnswer from 2024 FDD Document
re nonrefundable.
- (2) You are required to pay to Dickey's a "Royalty Fee" equal to 6% of Net Sales of your Restaurant and a contribution to the Marketing Fund for each calendar week period (the "Sales Period") equal to 3% of Net Sales of your Restaurant. These payments are electronically drafted from your account by ACH transfer based upon your statement certifying Net Sales for the Sales Period. We may negotiate these fees when the circumstances warrant such negotiation. If you do not report your Restaurant's Net Sales, we may debit your account for an amount equal to the last Royalty Fee and Marketing Fund contribution that we debited. If the amounts we debit are less than the amounts you actually owe us, then we will debit your account for the remaining balance on the day we specify.
Source: Item 6 — OTHER FEES (FDD pages 25–34)
What This Means (2024 FDD)
According to Dickeys Barbecue Pit's 2024 Franchise Disclosure Document, franchisees are required to contribute to the Marketing Fund. This contribution is 3% of the Restaurant's Net Sales for each calendar week period, referred to as the "Sales Period." These Marketing Fund contributions, along with Royalty Fees, are electronically drafted from the franchisee's account via ACH transfer. This transfer is based on the franchisee's statement certifying Net Sales for the Sales Period.
If a Dickeys Barbecue Pit franchisee fails to report their Restaurant's Net Sales, Dickey's may debit an amount equal to the last Royalty Fee and Marketing Fund contribution that was previously debited. If the debited amounts are less than what the franchisee actually owes, Dickey's will debit the remaining balance on a specified day.
Interest is charged if the Marketing Fund contribution, Royalty Fee, transfer, renewal fee payments, or any other sum due to Dickey's is not paid when due, or if an audit reveals underpayments based on incorrect Net Sales. This highlights the importance of accurate and timely reporting of Net Sales to avoid additional charges and potential interest fees.