When is the 6% of gross sales fee due to Endless Summer Sweets?
Endless_Summer_Sweets Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| 6% of your gross | Weekly | See Notes 1 and Note 2. | |
| sales |
Notes
-
- "Gross Sales" is defined in our franchise agreement as the total dollar amount of all sales generated through your business for a given period, including, but not limited to, payment for any services or products sold by you, whether for cash or credit. Gross Sales does not include (i) bona fide refunds to customers, (ii) sales taxes collected, (iii) sale of used equipment not in the ordinary course of business, or (iv) sales of prepaid cards or similar products (but the redemption of any such card or product will be included in Gross Sales).
-
- We currently require you to pay royalty fees and other amounts due to us by preauthorized bank draft on a weekly basis. However, we can require an alternative payment method.
Source: Item 6 — Other Fees (FDD pages 7–10)
What This Means (2024 FDD)
According to Endless Summer Sweets's 2024 Franchise Disclosure Document, franchisees must pay a royalty fee equal to 6% of their gross sales on a weekly basis. The FDD specifies in Note 2 that Endless Summer Sweets currently requires royalty fees and other amounts due to be paid via preauthorized bank draft weekly. However, Endless Summer Sweets retains the right to require an alternative payment method. Gross sales are defined as the total dollar amount of all sales generated through your business for a given period, including payments for any services or products sold, whether for cash or credit.
Gross sales do not include bona fide refunds to customers, sales taxes collected, the sale of used equipment not in the ordinary course of business, or sales of prepaid cards or similar products. However, the redemption of any such card or product will be included in gross sales.
It is important for prospective franchisees to understand that this 6% royalty fee is a recurring expense that will significantly impact their profitability. Franchisees should factor this weekly payment into their financial projections and ensure they have a system in place to accurately track and remit gross sales to Endless Summer Sweets.