When are weekly Advertising Fees due to Cost Cutters Family Hair Salon?
Cost_Cutters_Family_Hair_Salon Franchise · 2024 FDDAnswer from 2024 FDD Document
- 6.3 DATE PAYABLE; INTEREST ON UNPAID ADVERTISING FEES. The weekly Advertising Fees must be paid directly to and received by COST CUTTERS on or before the close of business on Wednesday of each week for the preceding week.
Any Advertising Fees not paid by the FRANCHISEE as required herein will bear interest at the maximum legal rate applicable in the state in which the FRANCHISEE'S Cost Cutters Business is located.
Source: Item 23 — RECEIPT (FDD pages 76–439)
What This Means (2024 FDD)
According to Cost Cutters Family Hair Salon's 2024 Franchise Disclosure Document, franchisees must pay weekly advertising fees to Cost Cutters Family Hair Salon on a specific schedule. These fees, calculated as 4% of the franchisee's weekly gross revenues, are due on or before the close of business on Wednesday of each week for the preceding week. This means that the advertising fees cover the prior week's earnings and must be submitted mid-week.
Failure to pay the advertising fees on time constitutes a material breach of the franchise agreement. If a franchisee does not pay the advertising fees as required, the unpaid amount accrues interest at the maximum legal rate applicable in the state where the Cost Cutters Family Hair Salon business is located.
Cost Cutters Family Hair Salon has the right to use advertising fund monies to purchase and pay for any services or products relating to advertising for Cost Cutters businesses. The franchisee's advertising fees are not refundable under any circumstances.