What is the deadline for a Chocolate Fish Coffee franchisee to report weekly gross sales?
Chocolate_Fish_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
- (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. Franchisee acknowledges that Chocolate Fish Franchising has the right to remotely access Franchisee's pointof-sale system to calculate Gross Sales.
Source: Item 23 — RECEIPTS (FDD pages 41–119)
What This Means (2024 FDD)
According to Chocolate Fish Coffee's 2024 Franchise Disclosure Document, franchisees must report their weekly gross sales to Chocolate Fish Coffee by Monday of the following week. This means that sales from Monday to Sunday of one week must be reported by the following Monday.
If a Chocolate Fish Coffee franchisee fails to report their weekly gross sales on time, Chocolate Fish Coffee has the right to withdraw estimated royalty fees and brand fund contributions. These fees will be equal to 125% of the last gross sales reported. Once the franchisee reports the actual gross sales, the fees will be reconciled to reflect the accurate amounts owed.
Chocolate Fish Coffee also has the right to remotely access a franchisee's point-of-sale system to calculate gross sales. This highlights the importance of accurate record-keeping and timely reporting to avoid estimated withdrawals and potential audits. Franchisees should ensure their point-of-sale systems are properly integrated and that they adhere to the reporting schedule to maintain compliance with the franchise agreement.