How must the Royalty Fee be paid to All States M.E.D.?
All_States_M_E_D Franchise · 2024 FDDAnswer from 2024 FDD Document
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NOTES
1Royalty Fee: The Royalty Fee begins immediately on the first month your Business is open for operation. The Royalty is due and payable monthly on the 10th day of each month, to be paid according to our specifications. Royalty and other fees shall be payable to us by direct deposit. See Schedule 5 of the Franchise Agreement. We reserve the right to change the time and manner of payment at any time upon written notice to you.
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ITEM 7. ESTIMATED INITIAL INVESTMENT
YOUR ESTIMATED INITIAL INVESTMENT
**A.
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, which is 8% of Gross Revenues, must be paid monthly by the 10th of the month for the previous month. Gross Revenue includes all revenue from operating the franchise, excluding taxes collected from customers and paid to the taxing authority. It is also reduced by documented refunds, credits, allowances, and chargebacks given to customers in good faith.
The Royalty Fee begins immediately in the first month the All States M.E.D. business is open. The Royalty Fee and other fees shall be payable to All States M.E.D. by direct deposit.
All States M.E.D. retains the right to modify the time and manner of payment with written notice to the franchisee. This means that while direct deposit is currently the required method, All States M.E.D. could change this in the future, so franchisees should stay informed of any updates from the franchisor.