What is the due date for the 6% of gross sales fee payable to Endless Summer Sweets?
Endless_Summer_Sweets Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| 6% of your gross | Weekly | See Notes 1 and Note 2. | |
| sales |
Notes
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- "Gross Sales" is defined in our franchise agreement as the total dollar amount of all sales generated through your business for a given period, including, but not limited to, payment for any services or products sold by you, whether for cash or credit. Gross Sales does not include (i) bona fide refunds to customers, (ii) sales taxes collected, (iii) sale of used equipment not in the ordinary course of business, or (iv) sales of prepaid cards or similar products (but the redemption of any such card or product will be included in Gross Sales).
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- We currently require you to pay royalty fees and other amounts due to us by preauthorized bank draft on a weekly basis. However, we can require an alternative payment method.
Source: Item 6 — Other Fees (FDD pages 7–10)
What This Means (2024 FDD)
According to Endless Summer Sweets's 2024 Franchise Disclosure Document, the 6% of gross sales fee is due weekly. Note 1 in Item 6 defines "Gross Sales" as the total dollar amount of all sales generated through your business for a given period, including payment for any services or products sold by you, whether for cash or credit, with some exclusions.
Endless Summer Sweets currently requires franchisees to pay royalty fees and other amounts due via preauthorized bank draft on a weekly basis. However, Endless Summer Sweets retains the right to require an alternative payment method.
Prospective franchisees should be aware of these payment terms and ensure they have systems in place to accurately track gross sales and make timely payments to Endless Summer Sweets to avoid any potential penalties or disruptions to their franchise operations.