When is the royalty fee due for a given week for a Chocolate Fish Coffee franchise?

According to the 2024 Chocolate Fish Coffee Franchise Disclosure Document, the royalty fee, which is 6% of gross sales, for any given week is due on Wednesday of the following week. This means that Chocolate Fish Coffee franchisees must remit their royalty payments relatively quickly after the close of each business week.

In addition to the royalty fee, Chocolate Fish Coffee franchisees must also pay a Brand Fund Contribution, which is 1% of the franchisee's gross sales. This payment is due at the same time as the royalty fee. Therefore, franchisees must ensure they have accurately calculated and are prepared to pay both the royalty fee and the Brand Fund Contribution by Wednesday of the week following the sales period.

It is common in the franchise industry for royalty fees to be assessed weekly or monthly, with payment due shortly thereafter. Franchisees should be aware of these payment obligations and plan their cash flow accordingly to avoid late fees or other penalties. Failing to remit payments on time can result in a $100 late fee plus interest on the unpaid amount at a rate of 18% per year.