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Considering a Bottle & Bottega Franchise? Don’t Overlook These 23 Important Franchise Fees

by Franchise Chatter on June 13, 2017

in Art-Related Franchise, Franchise Fees



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Don't Invest in a Franchise Until You Check Out This List

If you are considering a Bottle & Bottega franchise, don’t get blindsided by these 23 important franchise fees (from the initial franchise fee, to the royalty fee, to 21 other fees found in Items 5 and 6 of Bottle & Bottega’s 2017 FDD).

1.  Initial Franchise Fee:  $24,000 to $29,000



  • When you sign a Franchise Agreement for your first Business, you currently will pay Bottle & Bottega a $29,000 initial franchise fee in a lump sum.
  • If you are a franchisee in good standing and buy an additional franchise, the initial franchise fee for that Business will be $5,000 less than Bottle & Bottega’s then-current standard initial franchise fee.
  • Bottle & Bottega is also a member of the International Franchise Association and participates in the International Franchise Association’s VetFran Program, which provides a discount of 10% on initial franchise fees to veterans of the U.S. Armed Forces who otherwise meet the requirements of the Program. Three franchisees qualified for this discount during 2016. This discount is not available for second and subsequent franchises.
  • If you do not complete Bottle & Bottega’s initial training program (discussed below) to the franchisor’s satisfaction, Bottle & Bottega may terminate your Franchise Agreement. If it elects to terminate under these circumstances, it will refund to you the initial franchise fee, less $10,000 which covers its expenses.

2.  Initial Training Fee:  $1,500 for each additional franchise partner (initial training and training materials for up to 2 franchise partners are included in the initial franchise fee)

  • Bottle & Bottega will provide, at no extra charge to you, initial training and training materials for up to 2 franchise partners. If you choose to send additional franchise partners to initial training, you must pay Bottle & Bottega a $1,500 training fee for each additional person.
  • Training fees are uniform and nonrefundable. You must pay for all your trainees’ travel, meals, and lodging.

3.  Royalty Fee:  6% of Gross Sales earned during an Accounting Period; 5.5% when Gross Sales exceed $300,000 in a calendar year

  • Due Date:  Currently, 3 business days after close of each Accounting Period.
  • An Accounting Period currently is a one-week period during a calendar year.
  • After the first year, the Royalty Fee is subject to a $200 weekly minimum.
  • You must sign the Authorization for Automatic Payments (Attachment E to the Franchise Agreement) and allow Bottle & Bottega to draft these fees each week.

4.  Brand Marketing Fund Contribution:  amount designated by Bottle & Bottega, currently 2% of Gross Sales

  • Due Date:  3 business days after close of each Accounting Period.
  • Bottle & Bottega will administer a system-wide advertising and promotional fund.

5.  Local Advertising:  at least 2% of Gross Sales

  • Due Date:  As Bottle & Bottega directs.
  • Each calendar year, Bottle & Bottega can require you to spend at least 2% of Gross Sales to promote the Studio in your market area.

6.  Grand Opening Advertising Promotion:  currently $3,000 (this is the total amount that covers both the opening of the Mobile Business and the Studio)

  • Due Date:  As Bottle & Bottega directs.
  • At Mobile Business opening and Studio opening, Bottle & Bottega can require you to spend a total of $3,000 to promote both the Grand Opening of the Mobile Business and the Grand Opening of the Studio in your market area.

7.  Costs for Bottle & Bottega Goods and Services:  varies with circumstances



  • Due Date:  On delivery.
  • You must purchase Bottle & Bottega’s art supplies and other goods and services, which may be produced or manufactured in accordance with Bottle & Bottega’s specifications from a designated supplier.

8.  Related Promotional Costs:  varies per promotion

  • Due Date:  On demand.
  • You must participate, at your expense, in any loyalty programs, prize promotions, and/or any other such promotional campaign that Bottle & Bottega designates.
  • Bottle & Bottega’s current guest VIP brand loyalty program generates a free gift certificate worth up to $35 towards a public event registration for every 1,500 points earned. Guests receive 10 points for every dollar they spend at Bottle & Bottega.

9.  Annual Conference:  non-refundable fee per attendee, based on proportionate share of Bottle & Bottega’s out-of-pocket costs, but will not exceed $1,000; currently estimated at $100

  • Due Date:  Before 1st day of the conference.
  • You must also pay for travel, meals, and lodging.

10.  Late Charges:  1.5% per month or the highest amount allowed by law, calculated weekly

  • Due Date:  Continues to accrue until paid.

11.  Charge for Nonpayment Due to “Insufficient Funds”:  $50 (which will increase to $100 for any second or more “insufficient funds” charge during any rolling 12-month period), plus reimbursement of Bottle & Bottega’s costs and expenses from your non-payment

  • Due Date:  On demand.

12.  Additional Initial Training:  currently, $1,500 (per person)

  • Due Date:  On demand.
  • Bottle & Bottega will train up to 2 franchisees or operating partners without any additional charge.
  • You must pay Bottle & Bottega this fee if it trains additional operating partners for you.

13.  Studio Opening Assistance:  $250 per individual providing assistance per day, plus travel, lodging, and dining costs for individual providing studio opening assistance



  • Due Date:  Upon demand.

14.  Renewal Fee:  20% of Bottle & Bottega’s then-current Initial Franchise Fee

  • Due Date:  Before renewal.
  • To renew the franchise, you must sign Bottle & Bottega’s then-current form of Franchise Agreement, the terms of which may be materially different than the terms of its current Franchise Agreement.

15.  Transfer Fee (payable if you are an individual transferring to a business entity for convenience of operation):  $500

  • Due Date:  Before transfer.

16.  Transfer Fee (payable if your owners are transferring among themselves or transferring a minority ownership interest to one or more third parties):  $1,250

  • Due Date:  Before transfer.

17.  Transfer Fee (payable if you are assigning your interest in the Franchise Agreement, transferring all or substantially all of the assets of the Business, or your Owners are transferring a controlling interest):  30% of Bottle & Bottega’s then-current Initial Franchise Fee

  • Due Date:  Before transfer.

18.  Reimbursement of Monies Paid by Bottle & Bottega on Your Behalf:  varies with circumstances

  • Due Date:  On demand.
  • Covers cost of insurance and other payments you fail to make and which Bottle & Bottega makes on your behalf.

19.  Supplier Approval Fee:  varies with circumstances

  • Due Date:  On demand.
  • You may recommend suppliers to Bottle & Bottega at any time. You must pay Bottle & Bottega’s reasonable costs and expenses if you request it to inspect and evaluate a proposed supplier.

20.  Audit by Bottle & Bottega:  amount due, plus costs and expenses of audit

  • Due Date:  On demand.
  • If an audit discloses an underpayment of Gross Sales due to Bottle & Bottega of 5% more, you must pay Bottle & Bottega the amount in error, plus its costs and expenses for the audit.
  • Bottle & Bottega is not able to estimate a range for the audit costs because, as of the date of the 2017 Disclosure Document, it has not conducted an audit.

21.  Intranet/Technology Maintenance Fee:  approximately $600 per year and not to exceed $1,200 per year

  • Due Date:  On demand.
  • If Bottle & Bottega establishes an intranet, at its option, you may be asked to contribute a reasonable amount toward the cost of the intranet maintenance.

22.  Costs and Attorneys’ Fees:  varies with circumstances

  • Due Date:  On demand.
  • You must reimburse Bottle & Bottega for its costs and expenses in enforcing or terminating the Franchise Agreement.

23.  Indemnification:  varies with circumstances

  • Due Date:  On demand.
  • You must reimburse and pay Bottle & Bottega’s attorneys’ fees if it is held liable for claims from your operation of the Business.

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