When is the weekly Royalty Fee due to Chocolate Fish Franchising?
Chocolate_Fish_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee shall pay Chocolate Fish Franchising a weekly royalty fee (the "Royalty Fee") equal to 6% of Gross Sales. The Royalty Fee for any given week is due on Wednesday of the following week.
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 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.
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 weekly Royalty Fee, which is 6% of Gross Sales, is due on Wednesday of the following week. Franchisees are also required to report their weekly Gross Sales to Chocolate Fish Coffee by Monday of the following week.
If a Chocolate Fish Coffee franchisee fails to report their weekly Gross Sales, Chocolate Fish Coffee has the right to withdraw estimated Royalty Fees and Brand Fund Contributions. These estimated fees will be equal to 125% of the last Gross Sales reported to Chocolate Fish Coffee. After the franchisee reports their Gross Sales, the parties will then reconcile the actual fees owed.
It's important to note that Chocolate Fish Coffee requires the Royalty Fee, Brand Fund Contribution, and any other amounts owed to be paid via pre-authorized bank draft or in another manner that Chocolate Fish Coffee may require. If a franchisee does not make a payment on time, they will incur a $100 late fee, plus interest on the unpaid amount at a rate of 18% per year (or the highest rate allowed by law).