When is the monthly Royalty Fee due for an All States M.E.D. franchise?
All_States_M_E_D Franchise · 2024 FDDAnswer from 2024 FDD Document
(a) Franchisee shall pay to Franchisor without offset, credit or deduction of any nature, a monthly fee ("Royalty Fee") equal to 8% of Gross Revenues for the previous month period. The Royalty Fee is due on the tenth (10th) day of each month (for the prior month) and begins on the first (1st) month after the Business is open for operation and continues for the duration the term of this Agreement. The Franchisee will provide to Franchisor a Gross Revenues Report, as required by Section 12.2, for each month during the operation of the Franchise. If Franchisor requires Franchisee to pay Royalty Fees through electronic transfer as in Section 3.4, such reports shall instead be submitted to Franchisor via facsimile transmission, e-mail or intranet system.
Source: Item 23 — RECEIPTS (FDD pages 44–174)
What This Means (2024 FDD)
According to the 2024 All States M.E.D. Franchise Disclosure Document, the monthly Royalty Fee is due on the tenth day of each month. This payment covers the previous month's Gross Revenues. The Royalty Fee is 8% of Gross Revenues. This payment obligation starts the first month after the All States M.E.D. business opens and continues for the entire term of the Franchise Agreement.
Along with the Royalty Fee, the franchisee must also provide All States M.E.D. with a Gross Revenues Report each month. If All States M.E.D. requires Royalty Fees to be paid through electronic transfer, the Gross Revenues Reports must be submitted via facsimile transmission, e-mail, or intranet system.
Franchisees should be aware that All States M.E.D. requires all Royalty Fees and other amounts due to be paid through an Electronic Depository Transfer Account (EDTA). Franchisees must maintain sufficient funds in this account to cover the amounts owed to All States M.E.D. before the due date. Franchisees cannot close the EDTA without All States M.E.D.'s written consent.