Type of Fee |
Amount |
Royalty |
x% of total gross sales. |
Advertising |
x% of total gross sales. |
Additional Funds |
Established by franchisees. |
Local Advertising |
Established by franchisees. |
Grand Opening Advertising |
Php xx |
Audit |
Overdue amount. |
Fees for Unpaid Balances (when payment is more than one week late) |
Interest charge of 12% (or maximum allowed by law where the restaurant is located) per annum on amount owed. |
Fees for Unpaid Balances (when payment is more than one week late) |
Late fee of 10% (or maximum rate allowed by law where the restaurant is located) per annum of amount franchisee owes may be charged. |
Fees for Unpaid Balances (when the franchisee defaults on payments because of a bank change without notice) |
Php xx |
Fees for Unpaid Balances (bounced check or pre-authorized draft) |
Php xx |
Fees for Unpaid Balances (When Subway or its affiliate incurs the expense) |
Costs of collection, including lawyers' fees. |
Transfer |
Php xx plus Php xx for any satellite. |
Location Rent/License Fee |
Php xx - Php xx per month, estimated. |
Equipment lease |
Php xx per month per Php xx |
Equipment Lease (upon transfer) |
Transfer fee of x% of buyout price. |
Equipment Lease (upon early termination) |
Early termination fee of remainder of monthly payments, limited to xx months' payments. |
Equipment Purchase and Freight Charges |
Cost of equipment and buffer to cover freight charges, taxes, and other costs. |
Insurance |
Php xx - Php xx per year. |
Indemnification |
All liability, damages, and costs, including lawyers’ fees, incurred. |
Non-compete Violation |
Php xx for each competing store plus 8% of its gross sales, or Php xx (whichever is higher) |
Confidentiality Violation |
Damages. |
Trademark Violation |
Php xx per day. |
Operations Manual |
Php xx, subject to change in the future. |
Dispute Resolution |
Half of arbitration fee, except franchisee will pay the whole fee plus costs, including lawyers' fees, management preparation time, and travel expenses if he/she withholds money from the company or an affiliate.
If the franchisee breaches the provisions of the Franchise Agreement regarding mandatory arbitration, or restrictions on damages or against whom he/she can arbitrate, or the proper forum for an action, the franchisee will pay the company's expenses and the expenses of anyone named improperly, including lawyers' fees; the franchisee will be liable for abuse of process.
Probationary Case Management Fee - Php xx; Probationary Extension Fee - Php xx
Interim Order Case Management Fee - Php xx
Litigation Expense Fee to permit sale of restaurant -x% of gross consideration received for sale of restaurant, not to exceed Php xx |
Co-Brand Continuing Fee |
0% - x% of total gross sales of a co-brand concept. |
Fees Charged by Co-Brand Franchisor |
Fees and rates set by third party co-brand franchisor. |
Optional Store Listing Service |
Php xx for each 90 day period. |
Fees for Software License, Maintenance, and Processing |
For subshops:
Php xx initial license fee for the software when the franchisee purchases the POS system from Par or Micros
Annual Php xx software maintenance fee payable to the company
Php xx per year payable to a third party, subject to future changes, for Progress DBMS software
For POS:
No initial license fee
Annual Php xx-Php xx software maintenance fee payable to the company, subject to future changes.
Php xx to extend antivirus software every 3 years. |
Credit Card Payment Processing Fees |
Processing Fee estimated at Php xx per transaction.
Interchange Fee varies, estimated at 1.65% of transaction amount and Php xx per item.
Fixed Acquirer Network Fee. Amount determined by Visa, Inc. based upon your gross sales volume of all Visa-branded credit card purchases. Contact the credit card processor for more information. |
Retail Technology |
Varies as the company may implement various new technology. |
Customer Complaint Resolution Fee |
Php xx - Php xx per incident. |
Taxes and Other Fees |
- |
Training Fee |
None; unless franchisee signs a rider which requires him/her to send his/her Manager or Director of Food Services to the Training Program and the franchisee cannot prove that the person is his/her employee, in which case the franchisee must pay Php xx. |
Catering |
None; unless franchisee participates in the Call Center and Website Program in which case a fee equal to approximately x% of each catering order will be charged. |
Optional Customer Experience Program Fees |
Php xx per month. Also, each customer receipt redeemed for a cookie will cost approximately Php xx per cookie. |
Optional Loss Prevention Program Fees |
None; however, if franchisee fails to complete the program, the company will charge an administrative fee of Php xx. |