In what currency must the C3 Wellness Spa Royalty Fee be paid?
C3_Wellness_Spa Franchise · 2024 FDDAnswer from 2024 FDD Document
On-Going Obligation: The Royalty Fee is an on-going obligation due from Franchisee to Franchisor, is payable in United States Dollars and, as designated by Franchisor, is to be calculated and paid weekly, unless another recurring Accounting Period is designated by Franchisor, on the Gross Sales for the previous weekly Accounting Period for each and every week throughout the Term of this Agreement and any applicable renewal term.
Payment and Due Date: Royalty Fee payments will be paid weekly and sent by ACH, electronic funds transfer, or as otherwise designated by Franchisor and shall be due on the Tuesday of each weekly Accounting Period, for the preceding week and each week thereafter throughout the entire Term of this Agreement, or such other specific day of the week that Franchisor designates from time to time or for such other period that Franchisor may designate (the "Due Date").
Tax Obligations: If any federal, state or local tax, other than an income tax, is imposed on the Royalty Fee paid by Franchisee to Franchisor that, Franchisor cannot directly and, dollar for dollar, offset against taxes required to be paid by Franchisor under any applicable federal or state laws, Franchisee must compensate Franchisor in the manner prescribed by Franchisor so that the net amount or net rate received by Franchisor for the Royalty Fee is not less than that which has been established by this Agreement and which was due to Franchisor on the effective date of this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 59–293)
What This Means (2024 FDD)
According to the 2024 C3 Wellness Spa Franchise Disclosure Document, the Royalty Fee is an ongoing obligation from the franchisee to the franchisor and is payable in United States Dollars. The royalty fee is calculated and paid weekly, unless another recurring accounting period is designated by the franchisor.
The payment is based on the Gross Sales for the previous weekly accounting period for each week throughout the term of the agreement and any applicable renewal term. Payments are due on the Tuesday of each weekly accounting period for the preceding week, or on another specific day of the week that C3 Wellness Spa designates.
In addition to the royalty fee, if any federal, state, or local tax, other than an income tax, is imposed on the royalty fee paid by the franchisee to the franchisor, and the franchisor cannot directly offset it against taxes required to be paid under applicable federal or state laws, the franchisee must compensate the franchisor. This compensation ensures that the net amount received by the franchisor for the royalty fee is not less than what was established by the agreement on its effective date.