How much is the monthly royalty fee for a Crown Gold Exchange franchise?
Crown_Gold_Exchange Franchise · 2024 FDDAnswer from 2024 FDD Document
nchisee shall pay an initial franchise fee in the amount stated on the Summary Page. This initial franchise fee is not refundable.
- 4.2 Royalty Fee. Franchisee shall pay Crown Gold Franchising a monthly roy
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 a monthly royalty fee of $1,000 to Crown Gold Franchising. This royalty fee is due by the 5th day of the following month.
It's important for prospective franchisees to factor this recurring monthly expense into their financial projections. Unlike some franchise systems that calculate royalties as a percentage of gross sales, Crown Gold Exchange charges a fixed monthly amount, providing predictability but also requiring franchisees to meet this obligation regardless of monthly revenue fluctuations.
Additionally, the FDD outlines specific payment terms, including that the royalty fee must be paid via pre-authorized bank draft or another method specified by Crown Gold Franchising. Late payments incur a $100 late fee plus interest at 18% per year (or the maximum legal rate, if lower), and there is a $30 fee for any payment returned due to insufficient funds. These terms highlight the importance of maintaining timely and sufficient payments to avoid additional charges.