When is the royalty fee due for a Chop5 Salad Kitchen franchise?
Chop5_Salad_Kitchen Franchise · 2024 FDDAnswer from 2024 FDD Document
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.
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 due weekly. Specifically, the franchisee must pay a royalty fee equal to 6% of Gross Sales generated during the immediately preceding reporting period on the day of each week that Chop5 Salad Kitchen specifies as the "royalty fee due date".
The current reporting period for Chop5 Salad Kitchen runs from the opening of business on Monday through the close of business on Sunday. The current royalty payment due date is the Wednesday immediately following the end of the prior reporting period. This means that a franchisee's gross sales from Monday to Sunday must have the associated royalty payment submitted on the following Wednesday.
Chop5 Salad Kitchen retains the right to modify the reporting period and weekly royalty payment due date through updates to the Manual. This means that while the royalty fee is currently due each Wednesday, Chop5 Salad Kitchen can change this policy.