Franchise Fee Adjustment Sample Clauses
A Franchise Fee Adjustment clause defines how and when the fees paid by a franchisee to the franchisor may be changed during the term of the franchise agreement. Typically, this clause outlines the circumstances under which adjustments can occur, such as annual increases based on inflation, changes in market conditions, or periodic reviews. Its core practical function is to provide a transparent mechanism for updating franchise fees, ensuring both parties understand how future payments may be recalculated and helping to prevent disputes over fee changes.
Franchise Fee Adjustment. The Franchise Fee adjustment shall be the pass through of one hundred percent (100%) of any increase or decrease in the Franchise Fee, and shall be effective as of the date the Franchise Fee increase or decrease is payable by the Franchisee.
Franchise Fee Adjustment. Customers taking service within franchised areas shall pay a franchise fee adjustment in the form of a percentage to be added to their bills prior to the application of any appropriate taxes. This percentage shall reflect the Customers’ pro rata share of the amount the Company is required to pay under the franchise agreement with the specific governmental body in which the customer is located, plus the appropriate gross receipts taxes and regulatory assessment fees resulting from such additional revenue.