(gross includes all revenue from the franchise location but not sales tax)

This fee will be tied in with the cost of living index and modified every five years.

-Advertising Fee $25. per $100k annual gross to be paid monthly to begin, and will be amended by the Association majority vote.

-Training fees only as needed as determined by the Association. Freakie Fries franchisees will train other franchisees for a agreed upon fee as set by the Freakie Fries Franchise Association majority vote.

  -Trademark defense fund fee (non-refundable) will be set at $10.00 per $100k annual gross and  paid per month and is subject to modification by the Freakie Fries Franchise association and will be held in a special escrow account till needed.

-Freakie Fries Association operating budget fee will start at $25.00 per $100k annual gross, a month subject to modification by the Freakie Fries Franchise association according to agreed upon budget by a majority vote.

The Seniority Reward Fee will be set at $25.00 per month, as explained below.

The Seniority Reward Fee

As a way to reward longevity to a Freakie Fries Franchisee, I am setting up a monthly fee of $25.00 a month for a total of $300.00 a year. Each and every franchisee will pay this into the fund, and then the total monies will be divided by the number of total years in service of all the franchisees and then re-imbursed accordingly.

For example, let us say that there are 100 Freakie Fries Franchisees and the total collection for a year comes to $100.00 x $300.00 = $30,000.00. 

Then, the total years of service breaks down as follows:

10 franchisees @ 10 years = 100

3 franchisees @ 9 years = 27

7 franchisees @ 8 years = 56

30 franchisees @ 5 years = 150

50 franchisees @ 1 year = 50

The total years of service = 383, and so, divide that into $30,000.00 and you have $78.00 per year of service. And so, a franchisee that has been with the organization for 10 years receives 10 x 78 = $780.00 back for a net gain after paying his $300.00 of $480.00.

  This will reward the longer lasting franchisees, who have been building up the Freakie Fries name through their co-op advertising, so that newcomers get the benefit of this.

The Freakie Fries Franchise Association will be made up of all the franchisees within Freakie Fries. This group will vote on all matters with regards to the policies and directions of Freakie Fries. In this organization, the franchisee is also the co-franchisor along with all the other franchisees.

Absolutely any policy within the organization can be modified by majority vote. So, although I am setting the initial policies, any Freakie Fries franchisee may submit a proposal to be voted upon. If, for example, the advertising budget seems too low, it may be changed in this manner, with a majority agreement.

All franchisees, for better or for worse, will abide by these amendments, that may come. As this is told to you up-front, you must be willing to play by these rules.

There is no penalty for leaving Freakie Fries should any individual franchisee find that the direction of the majority no longer interests them. However, it is hoped that such scenarios never come our way.

Freakie Fries is a non-profit association, a buyer’s co-op, a credit union, a marketing group and a good buddy to the entire family of individual Freakie Fries franchisees.

That is what I want for Freakie Fries. The nominal royalty fee is for your right to use the Freakie Fries name.

There are no transfer, or renewal fees.

There may be audit fees if no way can be found to avoid it but will be at cost to the franchisee. For example, I set up the current advertising fee to be tied in with the gross sales in such a way that auditing is not necessary, but it may not remain that way if the association votes in another system that they feel better suits them. This in fact applies to all policies in Freakie Fries. Only the monthly royalty payment for the use of the trademark cannot be changed.

Thank You.