When is the Royalty Fee due for a Casa De Corazon franchise?
Casa_De_Corazon Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount (Note 1) | Due Date | Remarks |
|---|---|---|---|
| Royalty Fee | 7% of monthly Gross Revenue. | Payable on the tenth day of each month for the prior month. | Gross Revenue includes all revenue generated by your Center. (See Note 2) |
All fees and other amounts in the chart above are paid to us or our affiliate as disclosed above and are non-refundable. All fees are uniform for all new franchisees. These fees apply to each Franchise Agreement and Development Agreement that you sign. You must pay fees and other amounts due to us or our affiliates via electronic funds transfer/direct debit or other similar means. You must comply with our procedures and perform all acts and deliver and sign all documents, including authorization (in the form attached to this Disclosure Document as Exhibit H or other form that we may require) so that we may make direct debits from your business bank operating account to pay amounts owed to us. Under this procedure you authorize us to initiate debit entries and/or credit correction entries to a designated checking or savings account for payments of fees and other amounts payable to us and any interest that may be owing. You will make the funds available to us for withdrawal by no later than the payment due date. If the payment due date is not a business day, the date for payment shall be the next immediate business day. If you have not timely reported the Gross Revenue to us for any reporting period, or you withhold our access to accounting or financial systems or data we use to determine Gross Revenue, we can, at our option, debit your account for: (a) 110% of the fees transferred from your account for the last reporting period for which a report of the Gross Revenue was provided to us; (b) the amount due based on information we have regarding your business activities; or (c) 110% of the fees transferred from your account for the same period in the prior year. This is in addition to any other rights we may under the Franchise Agreement. You must certify to us your Gross Revenue in the prior month by the 5th of the immediately following month.
Source: Item 6 — OTHER FEES (FDD pages 11–15)
What This Means (2025 FDD)
According to Casa De Corazon's 2025 Franchise Disclosure Document, the Royalty Fee is due on the tenth day of each month for the prior month. The royalty is 7% of monthly Gross Revenue, which includes all revenue generated by the Casa De Corazon center.
Casa De Corazon requires franchisees to pay all fees via electronic funds transfer/direct debit. Franchisees must authorize Casa De Corazon to make direct debits from their business bank operating account. The funds must be available for withdrawal by Casa De Corazon no later than the payment due date. If the payment due date is not a business day, the payment date will be the next business day.
Casa De Corazon also requires franchisees to certify their Gross Revenue from the prior month by the 5th of the immediately following month. If a franchisee fails to report Gross Revenue in a timely manner or withholds access to accounting or financial data, Casa De Corazon has the option to debit the franchisee's account for a calculated amount. This amount could be 110% of the fees transferred from the account for the last reporting period, the amount due based on information Casa De Corazon has regarding business activities, or 110% of the fees transferred from the account for the same period in the prior year. This is in addition to any other rights Casa De Corazon may have under the Franchise Agreement.