Sample Franchise Disclosure Document | Other Fees Example

ITEM 6: OTHER FEES

(Column 1)
Type of fee
(Column 2)
Amount
(Column 3)
Due Date
(Column 4)
Remarks
Advertising (note 1) 2% of total gross sales. Same as royalty fee
Cooperative
Advertising (note 1)
Maximum – 2% of total
gross sales
Established by
franchisees
Franchisee may form an
advertising cooperative
and establish local
advertising fees.
Company-owned stores
have no vote in these
cooperatives.
Additional Training
(note 1)
$1,000 per person Two weeks prior to
beginning of training
Belmont trains two
persons free. See Item
11.
Additional Assistance
(note 1)
$500 per day Thirty days after
billing.
Belmont provides opening
assistance free. See Item
11.
Transfer (note 1) $1,000 Before the transfer. Payable when you sell
your franchise. No charge
if franchise transferred to
a corporation that you
control.
Audit (note 1) Cost of audit plus 10%
interest on
underpayment (note 2).
Thirty days after
billing.
Payable only if audit
shows an understatement
of at least 2% of gross
sales for any month.
Renewal Fee (note 1) $1,000 Thirty days before
renewal.

Note 1: All fees are imposed by and are paid to Belmont. All fees are non-refundable.

Note 2: Interest begins from the date of the underpayment.

CREDIT: The content of this post has been copied or adopted from the Federal Trade Commission’s Franchise Rule Compliance Guide.