How are the gross sales payments withdrawn from Chocolate Fish Coffee franchisees?
Chocolate_Fish_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
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.
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- "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).
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- 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, the brand requires franchisees to pay royalty fees and other amounts due via preauthorized bank draft. However, Chocolate Fish Coffee retains the right to require an alternative payment method.
The royalty fee is 6% of gross sales, due weekly on Wednesday. Additionally, there is a brand fund contribution of 1% of gross sales. The 1% contribution amounts due will be withdrawn by electronic wire transfer from the franchisee's designated bank account.
Gross sales are defined as the total dollar amount of all sales generated through the business, including payments for services or products sold, whether for cash or credit. Gross sales do not include bona fide refunds to customers, sales taxes collected, the sale of used equipment not in the ordinary course of business, or sales of prepaid cards or similar products; however, the redemption of any such card or product will be included in gross sales.