When is the Casa De Corazon royalty fee due each month?
Casa_De_Corazon Franchise · 2025 FDDAnswer from 2025 FDD Document
On or before the tenth (10th) day of each month, Franchisee shall pay to Franchisor a monthly nonrefundable royalty fee (the "Royalty Fee") equal to seven percent (7%) of the Gross Revenues of the Franchised Business for the prior month. The Royalty Fee shall be due and payable beginning on the tenth (10th) day of the month following the first full month after the commencement of operation of the Franchised Business for the prior full month and any prior partial month and continuing thereafter for each subsequent month. The Franchised Business shall be deemed to be operating on the date certified as such by Franchisor.
Source: Item 22 — CONTRACTS (FDD page 51)
What This Means (2025 FDD)
According to Casa De Corazon's 2025 Franchise Disclosure Document, the royalty fee is due on or before the tenth day of each month. This royalty fee is calculated as seven percent of the Gross Revenues from the franchised business for the prior month.
For a prospective Casa De Corazon franchisee, this means that they must accurately track their gross revenues each month and ensure that the royalty payment, equivalent to 7% of those revenues, is submitted to the franchisor by the 10th of the following month. The first payment is due on the tenth day of the month following the first full month of business operation.
Casa De Corazon requires franchisees to remit royalty fees via electronic funds transfer. Franchisees must report their gross revenues to Casa De Corazon by the fifth of each month. The funds for the royalty payment must be available for withdrawal by electronic transfer no later than 10:00 a.m. central time on the tenth of each month, or the next banking business day if the tenth falls on a non-banking day.
Failure to report gross revenues or withholding access to accounting data allows Casa De Corazon to debit the franchisee's account for an estimated amount. This amount could be 110% of the last reported royalty fees, an amount based on Casa De Corazon's information, or 110% of the prior year's royalty fees for the same period.