They said the royalty was 5%. They didn't say on what.
Your board game café franchise disclosure document buries the definition of 'royalty base' in paragraph 14.d.(iii). We find it before you sign.
The royalty base is the most important number you've never seen.
You read the FDD. You saw '5% royalty.' You initialed every page at 11:30pm because the recruiter said the territory expires tomorrow. You missed the clause that defines 'royalty base' as 'gross revenue before any deductions.' That means they take 5% of money you haven't even earned yet.
- The definition is buried 40 pages in, in a section titled 'Method of Payment'
- It uses terms like 'Gross Receipts' and 'Total Sales' interchangeably to confuse you
- It often excludes things like gift card breakage or catering minimums from your revenue but includes them in the base
We highlight exactly where they hide it.
Legal Shell AI doesn't just summarize your FDD. It cross-references every mention of 'royalty,' 'fee,' and 'payment' to find the single sentence that calculates your base. We show you the conflict, the precedent, and what it actually costs you per month.
- See the exact paragraph that defines the royalty base in plain English
- Get a calculation showing the difference between 'net' and 'gross' base for your projected sales
- Compare how 67% of board game café FDDs use a broader base than the franchisee expects
How to find the hidden base in 3 minutes
No legal degree required
Upload your FDD PDF
Just the document. We don't need your financials. Our AI reads the 200-page PDF and indexes every clause about money.
Jump to the 'Royalty' report
We generate a one-page report. The first section is 'Royalty Base Definition.' It quotes the exact sentence and shows you the surrounding clauses they hope you skip.
See the real cost
Enter your projected monthly game sales and food revenue. We calculate the royalty using the buried base definition versus a standard net base. The difference is usually $400-$800/month.
The numbers don't lie
From people who almost signed the wrong deal
"I was about to sign for a 'Combat Ready' board game cafe. The royalty was 6%. Sounds fine. Then Legal Shell showed me their base included 'all revenue from tournament entry fees.' That's 30% of my business. I walked."
"My lawyer glossed over the royalty base definition. He said it was standard. The AI found a footnote that excluded 'merchandise sales' from revenue but NOT from the base. That's a 12% effective increase. We renegotiated."
"Thought I was being paranoid. Turns out 2 out of 3 FDDs I reviewed for different cafe concepts had wildly different base definitions. One was on 'gross receipts before any deductions.' The other was on 'net sales after cost of goods.' Big difference."
Don't sign until you see the base.
Your board game café dream shouldn't be built on a misunderstood calculation. Find the hidden royalty base in your FDD now.
This content is for informational purposes only and does not constitute legal advice. Always consult a licensed attorney for legal matters.