Continuing Royalty. For and in consideration of Franchisor’s execution and performance of this Agreement, Franchisee shall pay in United States Do1lars to Franchisor a Continuing Royalty equal to one percent (1%) of all Franchisee’s monthly Gross Sales as hereinafter defined. Should the annual Continuing Royalty paid to Franchisor by Franchisee under this Agreement in respect of any fiscal year of Franchisee (commencing with Franchisee’s fiscal year beginning October 1, 1987) be less than Three Hundred Thousand Dollars ($300,000.00) (“minimum Continuing Royalty”) in respect of eighty-eight (88) International House of Pancakes Restaurants operated or subfranchised by Franchisee as of December 31, 1987, (“existing units”), Franchisee will lose one (1) year of any extension of the term hereof earned by Franchisee pursuant to
Continuing Royalty. (a) In addition to the Initial Franchise Fee, commencing on the Effective Date of this Agreement, Franchisee shall pay to Franchisor a Continuing Royalty equal to percentages of certain Gross Revenues derived from the Franchised Business during Franchisee’s First and succeeding Anniversary Years, as set forth in the following schedule: 0 $ 1,500,000 6.00% 1,500,000 2,500,000 5.25% 2,500,000 3,500,000 4.50% 3,500,000 5,000,000 3.75% 5,000,000 7,500,000 3.50% 7,500,000 15,000,000 3.35% 15,000,000 20,000,000 2.75% 20,000,000 25,000,000 2.50% 25,000,000 50,000,000 2.25% 50,000,000 l 00,000,000 2.00% 100,000,000 and greater 1.80%
(b) The Continuing Royalty payable during the First and succeeding Anniversary Years shall be adjusted when certain thresholds (“Thresholds”) are met. The Continuing Royalty percentages will apply only to the Gross Revenues between the two Thresholds set forth next to each percentage in the above Schedule. By way of example only, if Franchisee’s Gross Revenues during an Anniversary Year were $2,000,000 according to the Schedule, Franchisee would pay 6.00% on the first $1,500,000 of Gross Revenues (or $90,000), and 5.25% on the remaining $500,000 of Gross Revenues (or $26,250), for a total Continuing Royalty of $116,250.
(c) For purposes hereof, Gross Revenues shall be deemed to commence at $0 on the Effective Date and on the first day of each Anniversary Year thereafter.
(d) In its sole discretion, Franchisor shall have the right to reduce a Threshold and upon not less than 30 days’ prior written notice, to restore the Threshold to an amount that shall not exceed the maximum Thresholds specified in the schedule above, as adjusted annually by the Consumer Price Index.
(e) As further provided pursuant to paragraph 9.02 hereof, Franchisee shall report to Franchisor’s designated computer system (on a periodic basis as set forth in the Operations Manual) the Gross Revenues earned by Franchisee (i) upon consummation of the sale (notwithstanding that funds have not been exchanged) or close of escrow on all transactions entered into by Franchisee on or after the Effective Date (‘1entered into” shall be deemed to mean the taking by Franchisee of any action in respect of the transaction that consequently vests in it a right to receive payment) or (ii) upon the conclusion of other services rendered by Franchisee resulting in the generation of Gross Revenues; beginning on the Effective Date and continuing until the date of expiration or terminatio...
Continuing Royalty. Section 5.02 is hereby deleted in its entirety and replaced with the following:
(a) Commencing on the Effective Date of the Franchise Agreement, Franchisee shall pay to Franchisor a Continuing Royalty equal to[***]% of certain Gross Revenues derived from the Franchised Business during Franchisee’s First and succeeding Anniversary Years,
(b) As further provided pursuant to paragraph 9.02 hereof, beginning on the Effective Date and continuing until the date of expiration or termination of this Agreement, Franchisee shall report to Franchisor’s designated computer system (on a periodic basis as set forth in the Operations Manual) the Gross Revenues earned by Franchisee. The Continuing Royalty on such Gross Revenues shall be payable no later than the next business day following the day on which such Gross Revenues are required to be reported pursuant to the Operations Manual. Upon expiration or termination of this Agreement, the Continuing Royalty shall remain payable as to all Gross Revenues generated from sales contracts executed or from leasing and rental agreements executed prior to the date of such expiration or termination, and Franchisee shall continue to maintain the Depository Checking Account described in paragraph 9.04 until such time as all outstanding sums due Franchisor have been collected from the Depository Checking Account by Franchisor. Franchisee shall deposit the Continuing Royalty into the Depository Checking Account immediately when payable under this subparagraph or the following subparagraph hereof. Franchisee’s Continuing Royalty shall be paid to Franchisor regardless of the type of consideration received by Franchisee. In circumstances involving non-cash Gross Revenues, the method and timing of payment of Continuing Royalty may be varied in Franchisor’s reasonable discretion and said non-cash Gross Revenues will be valued at its then fair market value (in the case of a promissory note, its then fair market value shall be equal to the stated face value of the note). Franchisor shall have the right, in its sole discretion, to reduce the Continuing Royalty rate.
(c) Notwithstanding the preceding subparagraph, at Franchisee’s option, said Continuing Royalty shall not be payable as described in Paragraph (a) above on Gross Revenues not yet received by Franchisee, if payment of all or a portion of the commission earned is deferred pursuant to a written agreement; in which case the Continuing Royalty shall be payable upon the actual receipt ...
Continuing Royalty. The term “Continuing Royalty” shall mean the continuing royalty described in subparagraph 5.02
Continuing Royalty. In addition to the initial fee, during the initial ------------------ term of this Agreement, and for so long thereafter as Franchise Owner realizes Gross Receipts (as defined in Section 5.7), Franchise Owner agrees to pay to Franchisor a continuing monthly royalty fee (the "Continuing Monthly Royalty Fee") in the amount equal to nine percent (9%) of the first $1,000,000 of Gross Receipts during each calendar year, seven percent (7%) of the next $1,000,000 of Gross Receipts during each calendar year, and five percent (5%) of all Gross Receipts in excess of $2,000,000 during each calendar year. The dollar amounts subject to the 9%, 7% and 5% royalty percentage rates ("Dollar Amounts") shall be subject to annual revision as provided herein. On each January 1st, the Dollar Amounts shall be multiplied by a fraction (the "Fraction") determined as follows: The numerator shall be equal to the Consumer Price Index for all Urban Consumers, Medical Care Component ("index"), published for the preceding October by the United States Bureau of Labor Statistics. The denominator shall be the index published for the month one (1) year prior to the month used in calculating the numerator. The Dollar Amounts shall be replaced with the product resulting from multiplying each Dollar Amount by such Fraction rounded down to the nearest One Dollar ($1.00), but not less than the then-existing Dollar Amounts. All royalty payments due Franchisor during the calendar year of the adjustment shall be calculated based on the replacement Dollar Amounts. If the index is changed such that the base year differs for the two months used in determining the Fraction, the index shall be converted in accordance with the conversion factor published by the United States Department of Labor, Bureau of Labor Statistics. If the index is discontinued or revised during the term of this Agreement, such other governmental index or computation with which it is replaced shall be used to obtain substantially the same result as would be obtained if the index had not been discontinued or revised.
Continuing Royalty. A royalty equal to eight and one-half percent (8-1/2%) of the cash receipts from the sale or license by Bogaxx xx products or services containing the FACTOR 1000 technology, but not including any revenues derived by Bogaxx xxxm installation, maintenance, consulting, hardware sales, or any other revenues not directly or indirectly related to the FACTOR 1000 or CTT technology. BFI shall have the right to audit Bogaxx'x xxxords, with adequate notice, for the purpose of verifying royalty payments. Said royalty shall be due and payable within thirty (30) days after the conclusion of each calendar quarter commencing with the quarter ending December 31, 1995.
Continuing Royalty. For the rights and privileges granted under this license, Licensee will pay to Licensor a continuing royalty of U.S. $240,000 (currently based on a USD/Euro 1.35 conversion rate), to be paid over Years 2-5 of the Agreement, at the beginning of each calendar quarter. In addition, Licensee shall pay as additional continuing royalty of three percent (3%) of the invoice price (less duties, taxes and shipping) of systems incorporating Licensor’s Cyclone equipment which are sold by Licensee to third parties (the “Equipment Royalty”), with the Equipment Royalty amount to be added as an additional, non-taxable, non-dutiable item to each system invoice. The Equipment Royalty shall be paid by Licensee to Licensor within 60 days of Licensee’s receipt of the third parties’ payment of the systems invoices.
Continuing Royalty. As a continuing royalty, You agree to pay to CLF 5% of Your weekly Gross Receipts (which is defined below). This royalty is based on Your Gross Receipts for the week ending Sunday, which You agree to pay on or before the following Friday. CLF shall, at a future date, collect Your royalty payments by automatic funds transfer. You agree to participate in the automatic funds transfer program. Your obligation to pay this Continuing Royalty is Your acknowledged compensation to CLF for the use of the CLF Trademarks and System in the operation of Your Business, and for the on-going support and services furnished by CLF.
Continuing Royalty. In addition to the Initial Franchise Fee required to be paid by Franchisee to Franchisor hereunder, Franchisee shall pay in United States Dollars to Franchisor a Continuing Royalty as follows:
(a) An amount equal to four and one-half percent (4.5%) of Franchisee’s weekly Gross Sales, as hereinafter defined, or
(b) An amount equal to the percentage of Franchisee’s weekly Gross Sales, as hereinafter defined, as set forth in the schedule attached hereto, for a period of weeks following the date hereof and thereafter an amount equal to four and one-half percent (4.5%) of Franchisee’s Weekly Gross Sales for the balance of the term of this Franchise Agreement.
Continuing Royalty. Notwithstanding the terms of Section 4.1, after expiration of the last to expire of the Licensed Patent Rights, as defined in the Primary Sublicense Agreement, and until expiration of the last to expire of the Licensed Patent Rights, as-defined herein, KSA shall pay AH a royalty of * of Net Sales as defined in this Agreement and, without duplication, Net Sales as defined in the Primary Sublicense Agreement (without regard to the term of any patent) in combination with Net Sales as defined in this Agreement. KSA further agrees that the total earned royalties due to AH can rise to a maximum total of * should the provisions of the related non-exclusive patent licenses, the Manufacturing Patent License Agreement and Chloroquine Patent Sublicense Agreement between the parties and dated on even date herewith, be in effect. In such a case, * under this Agreement, * under such Manufacturing Patent License Agreement and * under such Chloroquine Patent Sublicense Agreement.
