When are weekly Continuing Fees due to Cost Cutters Family Hair Salon?
Cost_Cutters_Family_Hair_Salon Franchise · 2024 FDDAnswer from 2024 FDD Document
ligation to pay COST CUTTERS the weekly Continuing Fees under the terms of this Agreement will be absolute and unconditional and will remain in full force and effect until the term of this Agreement has expired. The FRANCHISEE will not have the right to "offset" and, as a consequence, the FRANCHISEE will timely pay all weekly Continuing Fees due COST CUTTERS under this Agreement regardless of any claims or allegations of liability for damages or other payments that the FRANCHISEE may allege against COST CUTTERS.
- 5.3 DATE PAYABLE. The weekly Continuing Fees payable by the FRANCHISEE must be paid to and received by COST CUTTERS on or before the close of business on Wednesday of each week for the preceding week. The weekly Continuing Fees must be paid and submitted with the FRANCHISEE'S weekly report of Gross Revenues required under Article 19 of this Agreement.
- 5.4 INTEREST ON UNPAID CONTINUING FEES. If the FRANCHISEE fails to remit the weekly Continuing Fees due to COST CUTTERS by Wednesday of each week for the previous week, as provided for in this Agreement, then the unpaid weekly Continuing Fees due to COST CUTTERS will bear interest at the maximum legal rate allowable in the state in which the FRANCHISEE'S Cost Cutters Business is located. In no event, however, will the rate of interest payable by the FRANCHISEE on the unpaid weekly Continuing Fees due COST CUTTERS under this Article exceed eighteen percent (18%) per annum simple interest even if the laws of that state permit a higher annual interest rate plus an
administrative fee of $100. If the FRANCHISEE does not submit a report of Gross Revenues pursuant to Article 19, then COST CUT
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 Continuing Fees to Cost Cutters Family Hair Salon on or before the close of business on Wednesday of each week for the preceding week. These fees must be submitted along with the franchisee's weekly report of Gross Revenues, as required under Article 19 of the agreement.
Failure to remit the weekly Continuing Fees by the Wednesday deadline will result in the unpaid fees incurring interest at the maximum legal rate allowable in the state where the Cost Cutters Family Hair Salon business is located. However, the interest rate will not exceed 18% per annum simple interest, even if state laws permit a higher rate, plus an administrative fee of $100. If a franchisee fails to submit a report of Gross Revenues, Cost Cutters Family Hair Salon has the right to estimate the Continuing Fees, and these estimated unpaid fees will also accrue interest at the aforementioned rate.
Furthermore, the franchisee is responsible for covering all costs incurred by Cost Cutters Family Hair Salon in the collection of unpaid and past due Continuing Fee payments. These costs may include actual attorneys' fees, deposition costs, expert witness fees, investigation costs, accounting fees, filing fees, and travel expenses. This highlights the importance of timely and accurate payment of Continuing Fees to avoid additional financial burdens.