When is the monthly royalty fee due for a Crown Gold Exchange franchise?
Crown_Gold_Exchange Franchise · 2024 FDDAnswer from 2024 FDD Document
- 4.2 Royalty Fee. Franchisee shall pay Crown Gold Franchising a monthly royalty fee (the "Royalty Fee") equal $1,000 per month. The Royalty Fee for any given month is due by the 5th day of the following month
4.6 Payment Terms.
- (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 charge $30 for any payment returned for insufficient funds (or, if such amount exceeds the maximum allowed by law, then the fee allowed by law).
Source: Item 22 — CONTRACTS (FDD pages 38–39)
What This Means (2024 FDD)
According to the 2024 Crown Gold Exchange Franchise Disclosure Document, the monthly royalty fee is due by the 5th day of the following month. The royalty fee is set at $1,000 per month.
Crown Gold Exchange requires franchisees to report their monthly gross sales by the 5th day of the following month. The FDD states that Crown Gold Franchising has the right to remotely access the franchisee's point-of-sale system to calculate gross sales.
If a Crown Gold Exchange franchisee does not make a payment on time, they will incur a $100 late fee, plus interest on the unpaid amount at a rate of 18% per year (or the highest rate allowed by law). Additionally, Crown Gold Franchising may charge $30 for any payment that is returned due to insufficient funds.