How are the fees paid to MSO by the Advanced Mobile Iv And Amiv provider?
Advanced_Mobile_Iv_And_Amiv Franchise · 2023 FDDAnswer from 2023 FDD Document
et Collections*"), (ii) for all Marketing Services set forth in Section 2C or elsewhere in this Agreement, a marketing fee (the "Marketing Services Fee") of 5% of Net Collections and (iii) for all other management services provided under this Agreement, an administration fee (the "Administration Fee") of 10% of Net Collections (the Billing and Collection Services Fee, the Marketing Services Fee and the Administration Fee collectively referred to as the "MSO Fee"). The MSO Fee shall be paid in accordance of Section 2B(4)(a) of this Agreement.
For each 12-month period following the initial 12-month period referred to in clause C. above, the parties may mutually agree upon the amount and form of the MSO Fee by the first day of each such subsequent 12-month period; provided that if the parties fail to agree upon the MSO Fee for a particular 12-month period, the MSO Fee for such period shall be automatically increased in an amount consistent with the annual percentage increase in the latest available medical component of the Consumer Price Index for urban consumers.
Pursuant to the power of attorney granted to MSO in Section 3A, and in payment of the MSO Fee, MSO is authorized to disburse the cash proceeds of Net Collections deposited in Provider Bank Account to a bank account of MSO on a daily basis and to pay from such proceeds, on behalf of Provider, in the following order: (i) provider's expense incurred in providing services, (ii) any advances made by MSO to Provider (unless otherwise deferred by MSO in its sole discretion), (iii) reimbursement for all expenses incurred by MSO to perform services hereunder, and (iv) the MSO Fee.
Past due MSO Fees shall, at MSO' election, bear interest at the lesser of three (3) percent per annum or the maximum rate permitted by law. On or before the fifteenth (15th) business day of each month, MSO shall provide an accounting of: (i) all amounts withdrawn by MSO from Provider Bank Account during the immediately preceding month as proceeds of Net Collections, and (ii) all payments made by MSO during the immediately preceding month on behalf of Provider for expenses incurred in providing services. The MSO Fee reflects the fair market value of MSO's services.
Source: Item 23 — RECEIPTS (FDD pages 54–202)
What This Means (2023 FDD)
According to the 2023 Franchise Disclosure Document, Advanced Mobile Iv And Amiv providers pay MSO (Management Services Organization) for services through a direct disbursement from the provider's bank account. MSO is authorized, via power of attorney, to withdraw cash proceeds from the provider's Net Collections deposited in the Provider Bank Account on a daily basis. These funds are then used to cover specific expenses in a defined order.
The order of payments is as follows: first, the provider's expenses incurred in providing services are paid. Next, any advances made by MSO to the provider are reimbursed, unless MSO decides to defer these reimbursements. Following this, MSO is reimbursed for all expenses it incurred while performing services. Finally, the MSO Fee itself is paid.
For the initial 12-month period of the agreement, the MSO Fee is calculated as follows: a 7% Billing and Collection Services Fee, a 5% Marketing Services Fee, and a 10% Administration Fee, all based on Net Collections. After this initial period, the amount and form of the MSO Fee can be mutually agreed upon by both parties. However, if they cannot reach an agreement, the MSO Fee will automatically increase by an amount consistent with the annual percentage increase in the latest available medical component of the Consumer Price Index for urban consumers. Advanced Mobile Iv And Amiv franchisees should note that past due MSO Fees may incur interest at a rate of 3% per annum or the maximum rate permitted by law, at MSO's election.