When is the royalty fee due for a Care Plus Medical Ucc franchise?
Care_Plus_Medical_Ucc Franchise · 2024 FDDAnswer from 2024 FDD Document
m 6 OTHER FEES**
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Royalty | 6% of your gross | Weekly, on | See Note 1 |
| sales | Tuesday | and Note 2. | |
| Marketing Fund Contribution | 1% of your gross sales | Weekly, on Tuesday | See Item 11 for a detailed discussion about these funds. Amounts due will be withdrawn by electronic wire transfer from your designated bank account. |
| Market Cooperative Contribution | As determined by co-op. Currently, none. | Weekly, on Tuesday | We have the right to establish local or regional advertising cooperatives. The maximum contribution that a co-op may require is 5% of gross sales. Any location owned by us or any affiliate will have the same voting rights as our franchisees. Dues will be imposed by a majority vote and will not be less than 1% of gross sales. If any location owned by us or any affiliates have a majority vote, the maximum fees imposed will not exceed 3% of gross sales. |
| Local Marketing/Required Spending | 2% of your gross sales | Monthly | You may only use promotional materials you have purchased from us or that we have provided to you. |
| Replacement / Additional Training fee | Currently, $450 per six-hour training session | Prior to attending training | If you send a manager or other employee to our training program after you open, we will charge our then-current training fee. |
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Pass-through of | Varies | We have the right to require franchisees to | |
| costs, plus | use third-party vendors and suppliers that | ||
| reasonable | we designate. Examples can include | ||
| administrative | computer support vendors, mystery | ||
| charge. Currently, | shopping, and customer feedback systems. | ||
| none. |
Source: Item 6 — OTHER FEES (FDD pages 12–16)
What This Means (2024 FDD)
According to Care Plus Medical Ucc's 2024 Franchise Disclosure Document, the royalty fee, which is 6% of gross sales, is due weekly, specifically on Tuesday. The FDD also notes that Care Plus Medical Ucc currently requires franchisees to pay royalty fees and other amounts due via preauthorized bank draft, although they can require an alternative payment method. Gross sales are defined in the franchise agreement, including all sales generated through the business, but excluding items like refunds, sales taxes, and the sale of used equipment.
In addition to the royalty fee, franchisees must also pay a marketing fund contribution of 1% of gross sales weekly on Tuesday. There is also a local marketing/required spending fee of 2% of gross sales, which is due monthly.
It is important to note that all fees are payable only to Care Plus Medical Ucc, with the exception of local marketing and software subscription charges. The FDD specifies that all fees are non-refundable and are generally uniform for all franchisees, although Care Plus Medical Ucc retains the right to change, waive, or eliminate fees for individual franchisees at their discretion.