How is the Brand Cooperative Advertising Fund Fee paid to Lees Famous Recipe?
Lees_Famous_Recipe Franchise · 2025 FDDAnswer from 2025 FDD Document
| Name of Fee(1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Brand Cooperative Advertising Fund Fee(3)(4) | 3% of Gross Sales | Payable on the Payment Date based on weekly Gross Sales for the prior week | You will pay us via electronic funds transfer, where we will electronically debit your designated bank account. |
Source: Item 6 — OTHER FEES (FDD pages 15–21)
What This Means (2025 FDD)
According to Lees Famous Recipe's 2025 Franchise Disclosure Document, the Brand Cooperative Advertising Fund Fee is paid via electronic funds transfer. Specifically, Lees Famous Recipe will electronically debit the franchisee's designated bank account. This fee is 3% of Gross Sales and is payable on the Payment Date, based on weekly Gross Sales for the prior week.
This electronic payment method, also known as ACH (Automated Clearing House), is a common practice in franchising for collecting ongoing fees like royalties and advertising contributions. It ensures timely and consistent payments from franchisees. Franchisees should ensure they have sufficient funds in their designated bank account to avoid any insufficient fund fees or late charges.
It's important to note that Lees Famous Recipe may adjust the Brand Cooperative Advertising Fund Fee with sixty days' notice, but it cannot exceed 4% of Gross Sales. Franchisees should also be aware of other advertising-related fees, such as Local Advertising Expenditures and Regional Advertising Cooperative Fees, which may also apply.