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 and any other fees payable pursuant to paragraph 5.01, 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 $ 1,650,000 6.00% 1,650,000.00 3,000,000 5.50% 3,000,000.00 5,000,000 4.50% 5,000,000.00 7,500,000 4.00% 7,500,000.00 10,000,000 3.75% 10,000,000.00 15,000,000 3.50% 15,000,000.00 20,000,000 3.00% 20,000,000.00 25,000,000 2.75% 25,000,000.00 50,000,000 2.50% 50,000,000.00 100,000,000 2.25% 100,000,000.00 and greater 2.00%
(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 $2,150,000 according to the Schedule, Franchisee would pay 6.00% on the first $1,650,000 of Gross Revenues (or $99,000), and 5.50% on the remaining $500,000 of Gross Revenues (or $27,500), for a total Continuing Royalty of $126,500 for such Anniversary Year.
(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, 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 (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 (“entered 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 ...
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. The term “Continuing Royalty” shall mean the continuing royalty described in subparagraph 5.02
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. A royalty equal to eight and one-half percent (8 1/2%) of the cash receipts from the sale or license by Xxxxxx of products or services containing the FACTOR 1000 technology, but not including any revenues derived by Xxxxxx from 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 Xxxxxx'x records, 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. Notwithstanding anything to the contrary set forth in that certain Third Amendment to Real Estate Brokerage Franchise Agreement (the “Third Amendment”), executed and made effective by Franchisor and Franchisee as of June 14, 2005, Franchisor hereby agrees that should Franchisor grant to any franchisee in the System with comparable or smaller-size Gross Revenues which results in such franchisee paying an cumulative Continuing Royalty rate less than the Continuing Royalty rate set forth in paragraph 1 of the Third Amendment, then in such event, Franchisor agrees, automatically and without demand by Franchisee, to adjust the overall effective Continuing Royalty rate payable by Franchisee to match such lower effective Continuing Royalty rate for so long as such lower effective Continuing Royalty rate is applicable. As used herein, the phrase “Continuing Royalty rate” means only the actual contractual Continuing Royalty rate and does not include conversion assistance, royalty fee waivers or credits or similar concessions granted by Franchisor. Upon the request of Franchisee, but no more than once in any Anniversary Year, Franchisor shall certify to Franchisee that the cumulative Continuing Royalty rate utilized by Franchisor in such calculation is the equal to the lowest cumulative Continuing Royalty rate charged by Franchisor to any franchisee in its Network with comparable or smaller-size Gross Revenues. Such certification shall be made by the Chairman or President of Franchisor. In addition, such certification shall notify Franchisee of any modifications to Franchisee’s Continuing Royalty rate schedule necessary as of the date of the certification to comply with the provisions of this paragraph 1 of this Fifth Amendment. Should Franchisor fail to provide a certification as requested, such failure shall not be a material breach of the New Franchise Agreement, but Franchisor shall provide such certificate to Franchisee within ten (10) business days following a written demand therefor. The foregoing paragraph is intended to supersede in its entirety the existing paragraph 2 of the Third Amendment.
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. 5 4.3 Advertising Fee. . . . . . . . . . . . . . . . . . . . . . . 5 4.4 Pre-Authorized Payments. . . . . . . . . . . . . . . . . . . 6 4.5
Continuing Royalty. Franchisee shall pay to Franchisor, as provided in Section 4.5, a continuing royalty (the “Continuing Royalty”) equal to 7% of Franchisee’s Gross Sales during the proceeding Accounting Period.
