Under what circumstances is the Management Fee payable to Dickeys Barbecue Pit, and what is the amount?
Dickeys_Barbecue_Pit Franchise · 2024 FDDAnswer from 2024 FDD Document
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| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| running your | Restaurant. | automatic delivery to you of the revised Manuals and/or forms. | |
| Restaurant | |||
| Transfer | Greater of $15,000 or Dickey's reasonable costs and expenses. | 5 days prior to confirmation of transfer. | Payable to Dickey's when you transfer the franchise or your ownership. No charge for transfer to an entity which you control; we may defer, reduce or waive the fee for transfer of a distressed Restaurant. See footnotes (1) and (6). |
| Renewal | $15,000. |
Source: Item 6 — OTHER FEES (FDD pages 25–34)
What This Means (2024 FDD)
According to Dickeys Barbecue Pit's 2024 Franchise Disclosure Document, a Management Fee is only payable if Dickeys Barbecue Pit or one of its affiliates operates the franchisee's restaurant. This situation would occur after the death or disability of the franchisee.
The Management Fee is 5% of Net Sales, in addition to covering any pass-through costs and expenses incurred while Dickeys Barbecue Pit is managing the restaurant. This fee is paid monthly.
This is an unusual fee in the franchise world, as it is not a standard, ongoing fee. It is only triggered by specific, unfortunate circumstances. Prospective franchisees should consider this potential cost when evaluating the overall financial obligations of owning a Dickeys Barbecue Pit franchise.