When is the Royalty Fee due to Care Plus Medical Ucc for any given week?
Care_Plus_Medical_Ucc Franchise · 2024 FDDAnswer from 2024 FDD Document
ARTICLE 4. FEES
- 4.1 Initial Franchise Fee. Upon signing this Agreement, Franchisee shall pay an initial franchise fee in the amount stated on the Summary Page. This initial franchise fee is not refundable.
- 4.2 Royalty Fee. Franchisee shall pay Care Plus Medical UCC a weekly royalty fee (the "Royalty Fee") equal to 6% of Gross Sales. The Royalty Fee for any given week is due on Tuesday of the following week.
Source: Item 22 — CONTRACTS (FDD page 41)
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, for any given week is due on Tuesday of the following week. Franchisees must also report their weekly Gross Sales to Care Plus Medical UCC by Tuesday of the following week.
Care Plus Medical UCC requires that franchisees make payments via pre-authorized bank draft or another method they specify. If a franchisee fails to report their weekly Gross Sales, Care Plus Medical UCC has the right to withdraw estimated Royalty Fees and Marketing Fund Contributions equal to 125% of the last Gross Sales reported. After the franchisee reports Gross Sales, the parties will reconcile the actual fees.
If a franchisee does not make a payment on time, Care Plus Medical UCC will charge a $100 late fee plus interest on the unpaid amount at a rate of 18% per year (or the highest rate allowed by law). Care Plus Medical UCC may also charge $30 for any payment returned due to insufficient funds (or the maximum fee allowed by law). These terms are typical in franchise agreements to ensure timely payments and to protect the franchisor's revenue stream.