On what day of the week are the gross sales payments due to Chocolate Fish Coffee?
Chocolate_Fish_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| 6% of your gross | Weekly, on | See Note 1 and Note 2. | |
| sales | Wednesday |
Notes
-
- "Gross Sales" is defined in our franchise agreement as the total dollar amount of all sales generated through your business for a given period, including, but not limited to, payment for any services or products sold by you, whether for cash or credit. Gross Sales does not include (i) bona fide refunds to customers, (ii) sales taxes collected, (iii) sale of used equipment not in the ordinary course of business, or (iv) sales of prepaid cards or similar products (but the redemption of any such card or product will be included in Gross Sales).
-
- We currently require you to pay royalty fees and other amounts due to us by preauthorized bank draft. However, we can require an alternative payment method.
Source: Item 6 — OTHER FEES (FDD pages 10–13)
What This Means (2024 FDD)
According to Chocolate Fish Coffee's 2024 Franchise Disclosure Document, a franchisee is required to submit 6% of their gross sales weekly, with payments due every Wednesday. This is a standard practice in franchising, allowing franchisors to collect royalties regularly based on the franchisee's sales performance. Gross sales are defined in the franchise agreement, including all sales generated through the business, whether for cash or credit, but excluding bona fide refunds to customers, sales taxes collected, sale of used equipment not in the ordinary course of business, or sales of prepaid cards. However, the redemption of any such card or product will be included in Gross Sales.
Chocolate Fish Coffee currently requires franchisees to pay royalty fees and other amounts due via preauthorized bank draft, although they retain the right to require an alternative payment method. This ensures timely and consistent payments. Franchisees should be aware of this weekly obligation and ensure they have sufficient funds available in their designated bank account to cover the 6% gross sales payment each Wednesday.
It is important for prospective franchisees to understand how Chocolate Fish Coffee defines gross sales and what payment methods are acceptable to avoid any late fees or potential non-compliance issues. Franchisees should also note that Chocolate Fish Coffee reserves the right to change the payment method, so staying informed about any updates to payment policies is crucial.