When are Crisp & Green royalty fees due?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
ion. The initial franchise fee (and asset transfer fee, if applicable) is fully earned by us as of the Effective Date and is non-refundable.
6.02 Royalty Fees. Once the Franchised Restaurant opens for business, you agree to pay us royalty fees of seven percent (7%) of Gross Sales, payable on or before the closing of business on the first business day of each calendar month with respect to the Gross Sales accrued during the most recently ended calendar month before the payment date.
If the Franchised Restaurant is not open and operating in compliance with our standards within nine (9) months after the Effective Date and we have not granted you an extension, you will be required to pay us Seven Thousand Five Hundred Dollars ($7,500) plus seven percent (7%) of your Gross Sales per month (the "Minimum Royalty Fee") as and for royalty fees for each month until your Restaurant opens in compliance with our standards (pro-rated for partial months). Additionally, if the Franchised Restaurant does not open for operation in compliance with our standards within nine (9) months after the Effective Date, unless you have received an approved extension, we may terminate this Agreement.
- 6.03 Technology Fee. You agree that you will pay fees to us, our Affiliates and/or our approved suppliers for technology services. You agree that you will pay us our thencurrent "Technology Fee" on or before the first business day of each calendar month. In exchange for the Technology Fee, we will provide you with one (1) email address.
Source: Item 23 — RECEIPTS (FDD pages 66–252)
What This Means (2024 FDD)
According to Crisp & Green's 2024 Franchise Disclosure Document, franchisees must pay a royalty fee of seven percent (7%) of Gross Sales. These royalty fees are payable on or before the closing of business on the first business day of each calendar month. The royalty payment covers the Gross Sales accrued during the most recently ended calendar month before the payment date.
Additionally, if a Crisp & Green franchised restaurant is not open and operating in compliance with the brand's standards within nine months after the Effective Date (and no extension has been granted), the franchisee will be required to pay a Minimum Royalty Fee. This Minimum Royalty Fee is $7,500 plus seven percent (7%) of the restaurant's Gross Sales per month. This fee is required each month until the restaurant opens in compliance with Crisp & Green's standards and is pro-rated for partial months.
It's important to note that failure to pay all amounts when due, including royalty fees, constitutes grounds for termination of the Franchise Agreement. Crisp & Green also requires franchisees to sign an electronic payment authorization agreement, if requested, to automatically debit the franchisee's bank account for royalty fees and other amounts due.