When is the Service Fee payable to Creative Colors?
Creative_Colors Franchise · 2025 FDDAnswer from 2025 FDD Document
| (1) Type of Fee | (2) Amount | (3) Due Date | (4) Remarks |
|---|---|---|---|
| Service Fee1/ | $500 per day, plus our out-of- pocket travel, lodging and meal expenses. | Immediately upon billing | You pay this amount if we operate your business while you are in default. |
Source: Item 6 — OTHER FEES (FDD pages 10–15)
What This Means (2025 FDD)
According to Creative Colors' 2025 Franchise Disclosure Document, the Service Fee is due immediately upon billing. This fee amounts to $500 per day, in addition to covering Creative Colors' out-of-pocket expenses for travel, lodging, and meals.
The Service Fee is charged if Creative Colors operates the franchisee's business while the franchisee is in default. This situation could arise if the franchisee fails to meet certain obligations outlined in the franchise agreement, leading Creative Colors to step in and manage the business temporarily.
For a prospective Creative Colors franchisee, this means that if they default on their obligations and Creative Colors takes over operations, they will be responsible for not only the $500 daily service fee but also any associated travel, lodging, and meal expenses incurred by Creative Colors during that period. It is important for franchisees to understand the terms of the franchise agreement to avoid default and the imposition of this fee.