When is the Brand Fund Contribution for Chocolate Fish Coffee due?
Chocolate_Fish_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
Brand Fund Contribution. Franchisee shall pay Chocolate Fish Franchising a contribution to the Brand Fund (the "Brand Fund Contribution") equal to 1% of Franchisee's Gross Sales (or such lesser amount as Chocolate Fish Franchising determines), at the same time as the Royalty Fee.
- (a) Method of Payment. Franchisee shall pay the Royalty Fee, Brand Fund Contribution, and any other amounts owed to Chocolate Fish Franchising by pre-authorized bank draft or in such other manner as Chocolate Fish Franchising may require. Franchisee shall comply with Chocolate Fish Franchising's payment instructions.
- (b) Calculation of Fees. Franchisee shall report weekly Gross Sales to Chocolate Fish Franchising by Monday of the following week. If Franchisee fails to report weekly Gross Sales, then Chocolate Fish Franchising may withdraw estimated Royalty Fees and Brand Fund Contributions equal to 125% of the last Gross Sales reported to Chocolate Fish Franchising, and the parties will true-up the actual fees after Franchisee reports Gross Sales.
- (c) Late Fees and Interest. If Franchisee does not make a payment on time, Franchisee shall pay a $100 "late fee" plus interest on the unpaid amount at a rate equal to 18% per year (or, if such payment exceeds the maximum allowed by law, then interest at the highest rate allowed by law).
Source: Item 23 — RECEIPTS (FDD pages 41–119)
What This Means (2024 FDD)
According to Chocolate Fish Coffee's 2024 Franchise Disclosure Document, the Brand Fund Contribution, which is 1% of the franchisee's Gross Sales (or a lesser amount determined by Chocolate Fish Coffee), is due at the same time as the Royalty Fee.
The franchisee is required to report weekly Gross Sales to Chocolate Fish Coffee by Monday of the following week. If the franchisee fails to report weekly Gross Sales, Chocolate Fish Coffee may withdraw estimated Royalty Fees and Brand Fund Contributions equal to 125% of the last Gross Sales reported. After the franchisee reports Gross Sales, the parties will reconcile the actual fees.
Payments for the Royalty Fee, Brand Fund Contribution, and any other amounts owed to Chocolate Fish Coffee must be made via pre-authorized bank draft or another method required by Chocolate Fish Coffee. If a payment is not made on time, a $100 late fee will be charged, along with interest on the unpaid amount at a rate of 18% per year (or the maximum rate allowed by law).