What methods of payment are acceptable for Royalty Fees and other amounts owed to Crown Gold Exchange?
Crown_Gold_Exchange Franchise · 2024 FDDAnswer from 2024 FDD Document
n Gold Franchising within 15 days after invoice by Crown Gold Franchising accompanied by reasonable documentation.
4.6 Payment Terms.
- (a) Method of Payment. Franchisee shall pay the Royalty Fee and any other amounts owed to Crown Gold Franchising by pre-authorized bank draft or in such other manner as Crown Gold Franchising may require. Franchisee shall comply with Crown Gold Franchising's payment instructions.
- (b) Calculation of Fees. Franchisee shall report monthly Gross Sales to Crown Gold Franchising by the 5th day of the following month. Franchisee acknowledges that Crown Gold Franchising has the right to remotely access Franchisee's point-of-sale system to calculate Gross Sales.
- (c) Late Fees and Interest. If Franchisee does not make a payment on time, Franchisee shall pay a $100 "late fee" plus interest on the unpaid amount at a rate equal to 18% per year (or, if such payment exceeds the maximum allowed by law, then interest at the highest rate allowed by law).
- (d) Insufficient Funds. Crown Gold Franchising may cha
Source: Item 22 — CONTRACTS (FDD pages 38–39)
What This Means (2024 FDD)
According to Crown Gold Exchange's 2024 Franchise Disclosure Document, franchisees are required to pay Royalty Fees and any other amounts owed to Crown Gold Franchising through pre-authorized bank drafts or any other method that Crown Gold Franchising may require. Franchisees must adhere to Crown Gold Franchising's specific payment instructions. This means a franchisee must set up a system for automatic payments from their bank account or use any other method Crown Gold Exchange specifies.
Crown Gold Exchange also has the right to remotely access the franchisee's point-of-sale system to calculate Gross Sales, which are reported monthly by the 5th day of the following month. If a franchisee fails to make payments on time, they will incur a $100 late fee, along with interest on the unpaid amount at a rate of 18% per year, or the highest rate allowed by law if the 18% exceeds legal limits. Additionally, Crown Gold Franchising may charge $30 for any payment returned due to insufficient funds, or the maximum fee allowed by law if $30 exceeds that limit.
Crown Gold Exchange retains significant control over payment methods and can change them as needed. Franchisees must remain flexible and adapt to any new payment instructions to avoid penalties. The ability of Crown Gold Exchange to remotely access the franchisee's point-of-sale system highlights the importance of maintaining accurate and transparent sales records. The late fees and interest charges underscore the necessity of timely payments to avoid additional financial burdens.