How often is the royalty fee paid by the Advanced Mobile Iv And Amiv franchisee?
Advanced_Mobile_Iv_And_Amiv Franchise · 2023 FDDAnswer from 2023 FDD Document
- 2.2 Royalty Fee.
Franchisee will pay to Franchisor a monthly royalty fee (the "Royalty Fee") equal to 5% of the total Gross Revenue derived from the Franchise during the preceding month.
This fee is due monthly in the manner specified below or as otherwise prescribed from time to time in our franchise disclosure document or the Operations Manual described in Section 5, below.
Source: Item 23 — RECEIPTS (FDD pages 54–202)
What This Means (2023 FDD)
According to Advanced Mobile Iv And Amiv's 2023 Franchise Disclosure Document, franchisees are required to pay a monthly royalty fee. This royalty fee is calculated as 5% of the total Gross Revenue derived from the franchise during the preceding month.
The royalty fee is due monthly, with the specific manner of payment detailed in the franchise disclosure document or the Operations Manual. Advanced Mobile Iv And Amiv also has the authorization to initiate Electronic Funds Transfer (EFT) charges to the franchisee's bank account for the payment of monthly Royalty, Marketing Fees, and other fees owed to the company. These EFT charges are scheduled to occur on or near the 5th day of each month.
This arrangement ensures a consistent and predictable revenue stream for Advanced Mobile Iv And Amiv, while also requiring franchisees to diligently track and remit their gross revenue figures on a monthly basis. The authorization for electronic funds transfer provides a convenient and reliable method for Advanced Mobile Iv And Amiv to collect the royalty fees, reducing the risk of late or missed payments. Franchisees should be aware of these monthly obligations and ensure they have sufficient funds available in their designated bank account to cover the royalty and other applicable fees.