What is the deadline for paying the All States M.E.D. Royalty Fee each month?
All_States_M_E_D Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Royalty Fee1 | 8% of Gross Revenues | Due monthly by the 10th of the month for the previous month | "Gross Revenue" means all of your revenue from operating the franchise, but excluding taxes collected from customers and paid to taxing authority, and reduced by the amount of any documented refunds, credits, allowances, and chargebacks the Business in good faith gives to customers. FA 3.2. |
Source: Item 6 — OTHER FEES (FDD pages 12–16)
What This Means (2024 FDD)
According to All States M.E.D.'s 2024 Franchise Disclosure Document, the Royalty Fee is due monthly by the 10th of each month. This fee is calculated as 8% of Gross Revenues, which includes all revenue from operating the franchise, excluding taxes collected from customers and remitted to taxing authorities. Gross Revenues are further reduced by documented refunds, credits, allowances, and chargebacks given to customers in good faith.
All States M.E.D. requires that the Royalty Fee be paid via direct deposit, although they reserve the right to change the payment method with written notice. The Royalty Fee begins accruing immediately in the first month the business is open.
It is important for prospective All States M.E.D. franchisees to understand how Gross Revenues are defined, as this directly impacts the Royalty Fee calculation. Franchisees should also be prepared to remit the Royalty Fee by the 10th of each month to avoid potential late payment penalties or other repercussions outlined in the Franchise Agreement.