On what date is the royalty payment due for Chop5 Salad Kitchen?
Chop5_Salad_Kitchen Franchise · 2024 FDDAnswer from 2024 FDD Document
council members. Each member would have one vote on all matters on which members are authorized to vote.
13. FEES
- 13.1. Initial Franchise Fee. You agree to pay us an initial franchise fee in the amount set forth in Part B of ATTACHMENT "A" in one lump sum at the time you sign this Agreement. The initial franchise fee is fully earned by us and nonrefundable once this Agreement is signed.
- 13.2. Royalty Fee. On the day of each week we specify (the "royalty fee due date"), you must pay us a royalty fee equal to 6% of Gross Sales generated during the immediately preceding reporting period. The current reporting period runs from the opening of business on Monday through the close of business on Sunday and the current royalty payment due date is the Wednesday immediately following the end of the prior reporting period. We may periodically change the reporting period and weekly royalty payment due date through updates to the Manual.
- 13.3. Other Fees and Payments. You must pay all other fees, expense reimbursements and other amounts specified in this Agreement in a timely manner as if fully set forth in §13. You also agree to promptly pay us an amount equal to all taxes levied or assessed against us based on goods or services you sell or goods or services we furnish to you, excluding income taxes imposed on us based on fees you pay us under this Agreement.
- 13.4. Due Date & Late Fee. Payments are due 10 days after invoicing unless otherwise specified. If any sum due under this Agreement has not been received by us when due or there are insufficient funds i
Source: Item 23 — RECEIPT (FDD pages 50–178)
What This Means (2024 FDD)
According to the 2024 Chop5 Salad Kitchen Franchise Disclosure Document, the royalty fee is 6% of gross sales, and the royalty payment is due each week on the Wednesday immediately following the end of the prior reporting period. The reporting period runs from the opening of business on Monday through the close of business on Sunday. However, Chop5 Salad Kitchen may periodically change the reporting period and weekly royalty payment due date through updates to the Manual.
For a prospective Chop5 Salad Kitchen franchisee, this means that you will need to calculate your gross sales each week and submit the 6% royalty payment by Wednesday. It is important to stay up-to-date with any changes to the reporting period or payment due date by carefully reviewing updates to the Manual. Failure to pay royalties on time could result in late fees or other penalties.
Payments for other fees, expense reimbursements, and other amounts specified in the Franchise Agreement are due 10 days after invoicing unless otherwise specified. If any sum due is not received when due, a franchisee must pay $100 plus default interest on the amount past due at a rate equal to the lesser of 18% per annum or the highest rate permitted by applicable Law. If no due date is specified, interest begins to run 10 days after Chop5 Salad Kitchen bills you.