When is the Monicals Pizza Royalty Fee due?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Royalty Fee | 4% of gross sales | 10th day of each month | You must pay your royalty fee directly to us. See definition of gross sales.1 |
- 1"Gross sales" means all revenue from the franchised restaurant. Gross sales do not include sales tax or use tax.
- 3 Late fees begin within 5 days from the date payment was due, but not received, or date of underpayment. | Type of Fee | Amount | Due Date | Remarks | | Late Fees3 | 1.5% per month or the highest rate allowed by the law of the state where you are located, whichever is less | Upon demand | Applies to all overdue fees you owe us. Also applies to any understatement in amounts due revealed by an audit.
Source: Item 6 — OTHER FEES (FDD pages 10–12)
What This Means (2025 FDD)
According to Monicals Pizza's 2025 Franchise Disclosure Document, the royalty fee, which is 4% of gross sales, is due on the 10th day of each month. The FDD specifies that franchisees must pay this royalty fee directly to Monicals Pizza. Gross sales are defined as all revenue from the franchised restaurant, excluding sales tax or use tax.
Franchisees should be aware of this monthly obligation as it directly impacts their cash flow. Failing to remit the royalty fee on time can result in late fees. The FDD states that late fees are 1.5% per month or the highest rate allowed by the law of the state where the franchisee is located, whichever is less. These late fees apply to all overdue fees owed to Monicals Pizza, including any understatements in amounts due revealed by an audit.
It is common practice in the franchise industry for franchisors to collect royalty fees on a regular basis, typically weekly or monthly. The funds are used to support the franchise system and provide ongoing services to franchisees. Monicals Pizza's monthly royalty fee payment schedule is fairly standard. Franchisees should ensure they have systems in place to accurately track gross sales and remit the royalty fee promptly to avoid penalties.