Considering a MOOYAH Franchise? Don’t Overlook These 24 Important Franchise Fees

Updated June 21, 2020.

If you are considering a MOOYAH franchise, don’t get blindsided by these 24 important franchise fees (from the initial franchise fee, to the royalty fee, to 22 other fees found in Items 5 and 6 of MOOYAH’s 2020 FDD).

1.  Initial Franchise Fee:  $40,000

• When you sign a Franchise Agreement, you must pay MOOYAH an initial franchise fee (“Initial Franchise Fee”). If you sign a single Franchise Agreement, the Initial Franchise Fee is $40,000.

• The Initial Franchise Fee is uniform for all franchisees and is earned by MOOYAH when you sign the Franchise Agreement.

• If you request a one-time extension of the Possession Deadline (as defined in Item 11), you must pay MOOYAH a non-refundable $1,000 extension fee as a condition to MOOYAH granting you an extension.

• If MOOYAH elects to terminate the Franchise Agreement because you (or all of you, if more than one person signs the Franchise Agreement) fail to complete its initial training program to its satisfaction, it will refund ½ of the Initial Franchise Fee if you sign a confidentiality agreement and general release. Otherwise, the Initial Franchise Fee is not refundable.

2.  Development Fee:  the total number of Restaurants in the Minimum Performance Schedule (less the 1st one), multiplied by $25,000

• If and when you sign an Area Development Agreement, you must pay MOOYAH a development fee (“Development Fee”) equal to the product of (1) the total number of Restaurants in the Minimum Performance Schedule (less the 1st one), multiplied by (2) $25,000.

• While MOOYAH and you may agree to deviate from it, MOOYAH’s standard Area Development Agreement will require you to commit to acquiring either 3 or 5 franchises, in which case the Development Fee will be either $50,000 (for a 3-Restaurant commitment) or $100,000 (for a 5-Restaurant commitment).

• You must sign the Franchise Agreement and pay the Initial Franchise Fee for the first franchise you agree to acquire at the same time you sign the Area Development Agreement and pay the Development Fee.

• As you sign the 2nd and each subsequent Franchise Agreement pursuant to the Area Development Agreement, MOOYAH credits the Development Fee, in $25,000 increments, toward the Initial Franchise Fee due under each such Franchise Agreement.

• The Development Fee is uniformly applied to persons entering into an Area Development Agreement, is fully earned by MOOYAH on your execution of the Area Development Agreement, and is non-refundable.

3.  Royalty Fee:  6% of Gross Sales

• Due Date:  Payable weekly.

4.  Advertising Fee:  3% of Gross Sales

• Due Date:  Payable weekly.

5.  Technology and Support Fee:  currently, $225 per month, but it may range between $225 and $550 per month

• Due Date:  Payable monthly.

• This fee provides for your right to use certain technology that MOOYAH mandates and makes available for use in the operation of your Restaurant from time to time.

• MOOYAH expects that the costs it incurs in and the resources it devotes to enhancing and expanding the technology used in the operation of the Restaurant may increase over time, so it reserves the right to increase the amount of the fee in its discretion.

6.  Audit:  overdue amount, plus audit costs, plus an under-reporting fee equal to 100% of the overdue amount

• Due Date:  15 days after billing.

• Due only if the audit is triggered by your failure to submit required reports or you are found to have understated Gross Sales by more than 2%.

7.  Interest:  will vary

• Due Date:  As incurred.

• If any amount is more than 1 week late, interest will accrue on the late payment at 10% of the past-due amount, but if the payment is late by 45 or more days, interest will accrue at a rate of the greater of 18% per annum or the highest rate permitted by applicable law.

8.  Transfer Fee – Franchise Agreement:  50% of MOOYAH’s then-current Initial Franchise Fee

• Due Date:  Submitted with transfer application.

9.  Renewal Fee:  $5,000

• Due Date:  Signing of renewal Franchise Agreement.

10.  Transfer Fee – Multi-Unit Operator Agreement:  $20,000

• Due Date:  Submitted with transfer application.

11.  Add-on Fee:  $5,000

• Due Date:  As incurred.

• Due only if MOOYAH allows you to add an individual as a principal owner under the Franchise Agreement.

• MOOYAH may refund this fee if the added individual fails to complete its training program to its satisfaction and, as a result, is removed from the Franchise Agreement as a principal owner.

12.  MOOYAH Indemnification:  will vary

• Due Date:  When incurred by MOOYAH or other indemnified party.

• If claims covered by the indemnity obligations are asserted against MOOYAH and its related parties, you must defend and hold MOOYAH harmless against all liability, damages, and costs, including lawyers’ fees, incurred.

13.  Operations Manual:  $500, subject to change in the future

• Due Date:  When you place order.

• Due if you lose and must replace your copy of MOOYAH’s Operations Manual.

14.  Reimbursement of Costs and Expenses for Restaurant Updates:  will vary

• Due Date:  As incurred.

• If MOOYAH notifies you that you must make certain additions, alterations, repairs, and/or replacements to your Restaurant, and you fail to do so, it may make such additions, alterations, repairs, and/or replacements. You must reimburse MOOYAH for its costs and expenses for doing so.

15.  Costs and Attorneys’ Fees:  will vary

• Due Date:  On demand.

• Due if you default under your Agreement, and MOOYAH incurs costs in enforcing or terminating it.

16.  Gift Card Program:  will vary

• Due Date:  As incurred.

• You must participate in MOOYAH’s gift card program. Gift cards are available for sale and redemption at all Restaurants in the System.

17.  New or Additional Employee Training:  $1,000 to $2,000 per employee trained

• Due Date:  On demand.

• Due if you request training for additional, new, or existing employees, or if MOOYAH requires you to take additional or refresher training programs.

18.  Annual Franchisee Meetings:  currently, MOOYAH does not charge a fee for attendance, but if it does, MOOYAH estimates it to be approximately $500

• Due Date:  If charged, prior to meeting.

• MOOYAH may charge a reasonable fee for attendance at annual meetings. You will pay for all expenses incurred by you and your attendees at the meeting, including travel, lodging, meals, and wages.

19.  Non-Compliance Charge:  $100 per day and increase of 1% to your Royalty Fee

• Due Date:  As incurred.

20.  Costs for Deficiencies:  will vary

• Due Date:  As incurred.

• If MOOYAH detects any deficiencies while conducting an inspection of your Restaurant, and you fail to correct such deficiencies, MOOYAH may (without any obligation to) correct such deficiencies, which you will reimburse MOOYAH for its costs.

21.  Insurance Premiums:  reimbursement of MOOYAH’s costs, plus 10% administrative fee

• Due Date:  On demand.

• Due if you fail to procure the required insurance, and MOOYAH, at its option, elects to procure it on your behalf.

22.  Management Fee:  10% of Gross Sales, plus costs and expenses

• Due Date:  As incurred.

23.  Management Fee Due to Death, Disability, or Prolonged Absence:  3% of Gross Sales, plus costs and expenses

• Due Date:  As incurred.

• Due if MOOYAH elects to manage your Restaurant upon your death, disability, or prolonged absence.

24.  Liquidated Damages:  will vary

• Due Date:  Upon termination of the Franchise Agreement for your breach.