Ben's Barketplace

From the date your Center opens for business through December 31 of that calendar year, the Royalty rate is 3% of Gross Sales. Beginning January 1 of the next calendar year, and on each January 1 after that, the Royalty rate will be determined based on Gross Sales for the immediately preceding calendar year as follows: (a) 3% if Gross Sales were $1,000,000 or less; (b) 4% if Gross Sales exceeded $1,000,000 but did not exceed $1,500,000; and (c) 5% if Gross Sales exceeded $1,500,000. Once your Royalty rate increases to 4%, it will not later decrease below 4%, and once it increases to 5%, it will remain 5% for the rest of the term of your Franchise Agreement. The Royalty is not tiered and does not change during a calendar year.