When is the Marketing Fund Contribution paid by an Endless Summer Sweets franchisee?
Endless_Summer_Sweets Franchise · 2024 FDDAnswer from 2024 FDD Document
- (a) Marketing Fund Contribution. Franchisee shall pay Franchisor a contribution to the Marketing Fund (the "Marketing Fund Contribution") equal to one per cent (1%) of Franchisee's Gross Sales at the same time as the Royalty Fee is paid.
- (b) Market Cooperative Contribution. If the Business participates in a Market Cooperative, then Franchisee shall contribute to the Market Cooperative a percentage of Gross
Source: Item 23 — RECEIPTS (FDD pages 39–125)
What This Means (2024 FDD)
According to the 2024 Endless Summer Sweets FDD, a franchisee is required to pay a Marketing Fund Contribution, which is equal to one percent (1%) of the franchisee's Gross Sales. This payment is due at the same time the Royalty Fee is paid.
In addition to the Marketing Fund Contribution, an Endless Summer Sweets franchisee may also be required to contribute to a Market Cooperative if the business participates in one. This contribution is determined by the Market Cooperative but will not be less than one percent (1%) of Gross Sales and will not exceed three percent (3%) of Gross Sales.
Prospective franchisees should clarify with Endless Summer Sweets the typical frequency and method of royalty fee payments to fully understand the payment schedule for the Marketing Fund Contribution. Understanding these payment obligations is crucial for managing the franchise's cash flow and financial planning.