CONTINUING SERVICES AND ROYALTY FEE Clause Samples
The Continuing Services and Royalty Fee clause defines the ongoing payments a franchisee or licensee must make to the franchisor or licensor in exchange for continued support, brand use, and access to proprietary systems. Typically, this fee is calculated as a percentage of gross sales or a fixed periodic amount, and it covers services such as training, marketing support, and operational guidance. The core function of this clause is to ensure the franchisor is compensated for ongoing assistance and brand value, while also clarifying the financial obligations of the franchisee or licensee throughout the agreement.
CONTINUING SERVICES AND ROYALTY FEE. A. Franchisee shall pay without offset, credit or deduction of any nature, to Franchisor, so long as this Agreement shall be in effect, a weekly Continuing Services and Royalty Fee equal to three percent (3%) of the Gross Sales derived from the Franchised Business. Said Continuing Services and Royalty Fee shall be paid weekly in the manner specified below or as otherwise prescribed in the Confidential Operations Manual. For current full-line dealer licensees of Franchisor or its affiliate who convert to the franchised System within thirty (30) days of the applicable effective date, the Continuing Services and Royalty fees are waived until the earlier of the expiration of such licensee's current license agreement or two (2) years from the date of execution of this Agreement.
1. On or before each Wednesday, Franchisee will submit to Franchisor on a form approved by Franchisor, a correct statement, signed by Franchisee, of Franchisee's Gross Sales for the preceding week ending Saturday. Franchisee will make available to Franchisor for reasonable inspection during normal business hours and with or without prior notice by Franchisor, all original books and records that Franchisee may deem necessary to ascertain Franchisee's Gross Sales
2. The term "Gross Sales", as used herein and throughout this Agreement, shall mean and include the total of all sales of all Trademarked Product Lines, merchandise, products or services to customers of Franchisee, (including interim deposits) whether or not sold or performed at or from the EASYRIDERS Franchised Business, and whether received in cash, in services in kind, from barter and/or exchange, on credit (whether or not payment is received therefor) or otherwise. There will be deducted from Gross Sales for purposes of said computation (but only to the extent they have been included) the amount of all sales tax receipts or similar tax receipts which, by law, are chargeable to customers, if such taxes are separately stated when the customer is charged and if such taxes are paid to the appropriate taxing authority. There will be further deducted from Gross Sales the amount of any documented refunds, chargebacks, credits and allowances given in good faith to customers by Franchisee. All barter and/or exchange transactions pursuant to which Franchisee furnishes services and/or products in exchange for goods or services to be provided to Franchisee by a vendor, supplier or customer will, for the purpose of determining Gross Sales...
CONTINUING SERVICES AND ROYALTY FEE. 3.01. Franchisee shall pay to Franchisor, without offset, credit or deduction of any nature, so long as this Agreement shall be in effect, a monthly Continuing Services and Royalty Fee in an amount equal to (a) three and three quarters percent (3.75%) of all Non-Fuel Revenue (as defined in Section 3.03(a) below); (b) three cents ($.03) per gallon on all sales at or from the Franchised Premises of gasoline which was purchased from a supplier other than Franchisor; and (c) three percent (3%) of all revenues earned directly or indirectly by Franchisee from or pertaining to all branded fast food sales approved for sale by Franchisor, after deducting from such amount the amount of royalties and advertising fees actually paid by Franchisee to any licensor or franchisor with respect thereto.
3.02. In addition to the payments described in 3.01 above, Franchisee agrees that it shall pay to Franchisor Improvement Rent (as defined in Exhibit B of the Lease Agreement), in the event Franchisor (either upon request of Franchisee or at Franchisor's sole discretion) performs or makes capital expenditures to improve the Franchised Premises, including but not limited to improvements to allow for the sale of branded fast food which has been approved in writing by Franchisor. The amount of such Improvement Rent shall be determined in accordance with Exhibit B of the Lease Agreement.
3.03. As used in this Agreement, the following terms shall have the meanings set forth below:
CONTINUING SERVICES AND ROYALTY FEE. 8 IV. PAYMENT........................................................10 V.
CONTINUING SERVICES AND ROYALTY FEE. 3.1 Commencing on January 1, 1994, Franchisee shall pay to Franchisor, without offset, credit or deduction of any nature, so long as this Agreement shall be in effect, an annual continuing services and royalty fee in an amount equal to three percent (3%) of the excess of all Non-Fuel Revenue derived from the Franchised Business during the calendar year over the Non-Fuel Revenue derived from the Franchised Business during the Base Year ("Continuing Services and Royalty Fee"). Such fee shall be paid monthly in arrears in the manner set forth in the Confidential Operations Manual.
3.2 On or before the tenth (10th) day of each month commencing February 1, 1994, Franchisee shall calculate the Non-Fuel Revenue derived from the Franchised Business during the prior month just ended ("Monthly Non-Fuel Revenue Amount"). If the Monthly Non-Fuel Revenue Amount exceeds the Average Monthly Base, Franchisee shall pay to Franchisor on or before the tenth (10th) day of each month, three percent (3%) of the excess of the Monthly Non-Fuel Revenue Amount over the Average Monthly Base. If the Monthly Non-Fuel Revenue Amount is less than the Average Monthly Base, Franchisor shall credit Franchisee's account in the amount of three percent (3%) of the difference between the Monthly Non-Fuel Revenue Amount and Average Monthly Base and shall deduct such amount from the Continuing Services and Royalty Fee payments due in subsequent months for the remainder of such calendar year. In January of each year, Franchisor shall reconcile Franchisee's monthly payments of Continuing Services and Royalty Fees for the preceding year just ended. In the event that Franchisee has overpaid the amount due for Continuing Services and Royalty Fees in any calendar year, Franchisor shall refund to Franchisee any Continuing Services and Royalty Fees paid by Franchisee during such preceding calendar year.
3.3 On or before the tenth (10th) day of each month Franchisee will submit to Franchisor on a form approved by Franchisor, a correct statement, signed by Franchisee, of Franchisee's Monthly Non-Fuel Revenue Amount for the preceding month just ended. Each monthly statement shall be accompanied by Franchisee's calculation of the Continuing Services and Royalty Fee payment based on the Monthly Non-Fuel Revenue Amount reported in the statement so submitted for the preceding month just ended. Franchisee shall make available to Franchisor for reasonable inspections at reasonable times all original books and re...
CONTINUING SERVICES AND ROYALTY FEE. A. Franchisee shall pay without offset, credit or deduction of any nature to Franchisor, so long as this Agreement shall be in effect, a weekly Royalty Fee equal to six percent (6%) of the Gross Sales derived from the Franchised Business. Said fee shall be paid weekly in the manner specified below or as otherwise prescribed in the Manual.
1. On or before Friday of each week, Franchisee will submit to Franchisor, on a form approved by Franchisor, a correct statement, signed by Franchisee, of Franchisee's Gross Sales for the preceding week just ended Friday. Each weekly statement of Gross Sales shall be accompanied by Franchisee's calculation of the Royalty Fee payment based on the Gross Sales reported in the statement so submitted and a sales report for the preceding week just ended Friday. Franchisee shall make available to Franchisor all original books and records that Franchisor may deem necessary to ascertain Franchisee's Gross Sales for reasonable inspections at reasonable times.
CONTINUING SERVICES AND ROYALTY FEE. A. FRANCHISEE shall pay to FRANCHISOR, so long as this Agreement shall be in effect, a Continuing Services and Royalty Fee (equal to a percentage in accordance with the Table below) per mortgage credit report ("unit") made by FRANCHISEE'S gross sales derived from the "FACTUAL DATA" Business franchised hereunder. Said royalty is to be paid monthly in the manner specified below or as otherwise prescribed in the Operations Manual. TABLE OF ROYALTY CHARGES Number of Units Sold Per Month Percentage of Gross Sales Number of Units Sold Per Month 5% of Gross sales sold per month * ON ALL UNITS SOLD THAT MONTH The FRANCHISEE acknowledges that the above table reflects a total rate for ALL units sold that month, and that only one percentage rate is applied, that being the greatest percentage rate attained each month. The FRANCHISEE agrees to permit FRANCHISOR access to its computers to obtain FRANCHISEE'S sales reports for the previous month of operations. This access will be given not later than the 5th day of each month. The continuing services and royalty fee payment based on the gross sales shown by FRANCHISEE'S computer records must also be paid no later than the 10th day of each month. FRANCHISOR will also utilize FRANCHISEE'S sales reports for the preparation of FRANCHISEE'S monthly billing statements. FRANCHISEE will make available for reasonable inspection at reasonable times by FRANCHISOR, all original books and records that FRANCHISOR may deem necessary to ascertain gross sales.
CONTINUING SERVICES AND ROYALTY FEE. A. Until December 30, 1987, FRANCHISEE shall pay to FRANCHISOR, so long as this Agreement shall be in effect, a Continuing Service and Royalty Fee equal to four percent (4%) of the total gross receipts from each Ryan's Family Steak House franchised hereunder, said Fee to be paid monthly in the manner specified below or otherwise prescribed in the Confidential Operating Manual.
1. FRANCHISEE shall submit to FRANCHISOR, on a form approved by FRANCHISOR, a correct statement of gross receipts signed by an appropriate officer of FRANCHISEE, no later than the tenth (10th) day of each month. Each monthly statement of gross receipts shall be accompanied by the Continuing Services of Royalty Fee payment based on the gross receipts reported in the statement so submitted. FRANCHISEE will make available for reasonable inspection at reasonable times by FRANCHISOR, all original books and records that FRANCHISOR may deem necessary to ascertain gross receipts.
CONTINUING SERVICES AND ROYALTY FEE. A. Franchisee shall pay without offset, credit or deduction of any nature, to Franchisor, so long as this Agreement shall be in effect, a monthly Continuing Services and Royalty Fee equal to 2% of the Gross Sales derived from the Franchised Retail Business. Said Continuing Services and Royalty Fee shall be paid monthly in the manner specified below or as otherwise prescribed in the Confidential Operations Manual.
1. On the 15th day of each month, Franchisee will submit via facsimile to Franchisor on a form approved by Franchisor, a correct statement, signed by Franchisee, of Franchisee's Gross Sales for the preceding month just ended. The Continuing Services and Royalty Fee payment shall be mailed to Franchisor at such time or Franchisor may require Franchisee to submit proof that such payment was made via electronic funds transfer. Franchisee will make available to Franchisor for reasonable inspection at reasonable times by Franchisor, all original books and records that Franchisor may deem necessary to ascertain Franchisee's Gross Sales.