Ongoing Fees
Royalty Rate—
Marketing / Ad Fee—
notesRoyalty: 5% of Net Sales. National Marketing Fund: 1.75% of Net Sales. Local Advertising: 1% of Net Sales. Total Marketing Obligation (including National Marketing Fund + local advertising + cooperative) capped at 3% of Net Sales. Monthly tech fees include: POS Hosted Solutions ($200-$400), Employee Scheduling ($75), Digital Ordering ($85), Catering Management ($110 plus $0.10 per transaction), Learning Management System ($49). Quarterly Back Office Software: $525. Annual POS Maintenance: $2,750-$6,500. Additional fees vary (Network Security, Computer System modifications, product testing, mystery customer program capped at $500/year). Transfer fee: 50% of current initial franchise fee. Renewal fee: $5,000. Relocation fee: $2,500.
royalty rate pct5
tech fee monthlynull
marketing fund pct1.75
total ongoing fee burden pct3
Territory (Item 12)
red flags["Franchisor explicitly reserves right to establish restaurants under same trademark outside Protected Area with no proximity limitations","Franchisor can operate alternative distribution channels (internet, catalog, telemarketing) within Protected Area with no revenue sharing to franchisee","Franchisor reserves right to acquire and operate competing businesses under different trademarks anywhere without franchisee consent","Franchisor can establish non-restaurant businesses under Proprietary Marks within Protected Area","Franchisor can license institutional accounts (airports, stadiums, hospitals, etc.) under Proprietary Marks within Protected Area","Franchisor affiliates operate competing brands that can solicit customers near franchisee location","Protected Area can be unilaterally reduced if franchisee misses development schedule deadline","Franchisee explicitly prohibited from any online sales, internet ordering, or electronic delivery","No minimum size guarantee for Protected Area","Territorial protection not dependent on performance metrics, only compliance"]
encroachment riskHigh
online ordering carveouttrue
exclusive territory grantedfalse