Common use of Franchise Fees Clause in Contracts

Franchise Fees. (a) From the opening of the Restaurant for business until the expiration or termination of this Agreement, Franchisee shall pay Franchisor each month a non-refundable amount of $200.00 per month (hereinafter referred to as the “Monthly Fee”). (b) In addition to the Monthly Fee, Franchisee shall pay Franchisor a monthly royalty on certain food items that Franchisor has negotiated deviated pricing, with the royalty rate for each food item set opposite the name of such food item in Exhibit C attached hereto (the “Food Royalty Fee”). (c) In addition to the Monthly Fee and the Food Royalty Fee, Franchisee shall pay Franchisor a monthly royalty on the items set forth in Exhibit D attached hereto (hereinafter referred to as the “Other Royalty Fee”, and with the Monthly Fee and the Food Royalty Fee collectively, the “Franchise Fees”). Currently, the Other Royalty Fee is one percent (1%) on all purchases on the items set forth in Exhibit D. (d) For 2012, the maximum aggregate amount payable in any month by Franchisee for the Monthly Fee, Food Royalty Fee and Other Royalty Fee shall be capped at $1,500 per month (the “Monthly Cap”). For each subsequent year, the Franchisor may increase the Monthly Cap by up to 3% or by the consumer price index for the previous year (as published by the Bureau of Labor Statistics of the United States Department of Labor), whichever is the greater. (e) Franchisor has the right, at its sole discretion, to amend, update or change the items listed in Exhibit C, Exhibit D, and the Taste of Philly order guide, at any time. Franchisee acknowledges Franchisor’s right to collect fees, rebates, and marketing allowances from food distributors, food manufacturers, food brokers, or other vendors or suppliers, as well as from Franchisee. Franchisee shall have no claim for offset or a reduction in fees with respect to any fees Franchisor may negotiate from any other party.

Franchise Fees. The Grantee shall pay to the Village a Franchise Fee in an amount equal to five percent (5%) of annual Gross Revenues received from the operation of the Cable System to provide Cable Service in the Franchise Area; provided, however, that Grantee shall not be compelled to pay any higher percentage of fees than any other video service provider, under state authorization or otherwise, providing service in the Franchise Area. The payment of Franchise Fees shall be made on a quarterly basis and shall be due forty-five (45) days after the close of each calendar quarter. If mailed, the Franchise Fee shall be considered paid on the date it is postmarked. Each Franchise Fee payment shall be accompanied by a report prepared by a representative of the Grantee showing the basis for the computation of the franchise fees paid during that period. Any undisputed Franchise Fee payment which remains unpaid in whole or in part, after the date specified herein shall be delinquent. For any delinquent Franchise Fee payments, Grantee shall make such payments including interest at the prime lending rate as quoted by XX Xxxxxx Xxxxx & Company or its successor, computed from time due until paid. Any undisputed overpayments made by the Grantee to the Village shall be credited upon discovery of such overpayment until such time when the full value of such credit has been applied to the Franchise Fee liability otherwise accruing under this Section. 5.1.1. The Parties acknowledge that, at present, the Cable Act limits the Village to collection of a maximum permissible Franchise Fee of five percent (5%) of Gross Revenues. In the event that a change in the Cable Act would allow the Village to increase the Franchise Fee above five percent (5%), and the Village actually proposes to increase the Franchise Fee in exercise of such authority, the Village may amend the Franchise Fee percentage. Following the determination to increase the Franchise Fee and enactment of an ordinance enabling the same, the Village shall notify the Grantee of its intent to collect the increased Franchise Fee, and Grantee shall have a reasonable time (not to be less than ninety (90) days from receipt of notice from the Village) to effectuate any changes necessary to begin the collection of such increased Franchise Fee. In the event that the Village increases said Franchise Fee, the Grantee shall notify its Subscribers of the Village’s decision to increase said fee prior to the implementation of the collection of said fee from Subscribers as required by law. 5.1.2. In the event a change in state or federal law requires the Village to reduce the franchise fee percentage that may be collected, the parties agree the Grantee shall reduce the percentage of franchise fees collected to the lower of: i) the maximum permissible franchise fee percentage; or ii) the lowest franchise fee percentage paid by any other Cable Operator granted a Cable Franchise by the Village pursuant to the Cable Act, and Section 11-42-11 of the Illinois Municipal Code; provided that: (a) From such amendment is in compliance with the opening of the Restaurant for business until the expiration change in state or termination of this Agreement, Franchisee shall pay Franchisor each month a non-refundable amount of $200.00 per month (hereinafter referred to as the “Monthly Fee”). federal law; (b) In addition to the Monthly Fee, Franchisee shall pay Franchisor a monthly royalty on certain food items that Franchisor has negotiated deviated pricing, with Village approves the royalty rate for each food item set opposite the name of such food item in Exhibit C attached hereto (the “Food Royalty Fee”). amendment by ordinance; and (c) In addition the Village notifies Grantee at least ninety (90) days prior to the Monthly Fee and the Food Royalty Fee, Franchisee shall pay Franchisor a monthly royalty on the items set forth in Exhibit D attached hereto (hereinafter referred to as the “Other Royalty Fee”, and with the Monthly Fee and the Food Royalty Fee collectively, the “Franchise Fees”). Currently, the Other Royalty Fee is one percent (1%) on all purchases on the items set forth in Exhibit D. (d) For 2012, the maximum aggregate amount payable in any month by Franchisee for the Monthly Fee, Food Royalty Fee and Other Royalty Fee shall be capped at $1,500 per month (the “Monthly Cap”). For each subsequent year, the Franchisor may increase the Monthly Cap by up to 3% or by the consumer price index for the previous year (as published by the Bureau effective date of Labor Statistics of the United States Department of Labor), whichever is the greatersuch an amendment. (e) Franchisor has the right, at its sole discretion, to amend, update or change the items listed in Exhibit C, Exhibit D, and the Taste of Philly order guide, at any time. Franchisee acknowledges Franchisor’s right to collect fees, rebates, and marketing allowances from food distributors, food manufacturers, food brokers, or other vendors or suppliers, as well as from Franchisee. Franchisee shall have no claim for offset or a reduction in fees with respect to any fees Franchisor may negotiate from any other party.

Franchise Fees. Notwithstanding anything to the contrary in this Agreement or the Existing Franchise Agreement, Franchisor, by execution hereof, agrees that (ai) From the opening Continuing Royalty Fee payable pursuant to Section 9.3 of the Restaurant for business Existing Franchise Agreement shall be 4% of Franchisee’s prior month’s Gross Room Sales (as defined in the Existing Franchise Agreement) and (ii) until the expiration or termination 60 month anniversary of this Agreementthe Full Conversion Date, Franchisee the Continuing Royalty Fee otherwise payable by Owner for any Fiscal Year shall pay Franchisor each month a non-refundable be reduced, up to the full amount of $200.00 per month (hereinafter referred to as any such Continuing Royalty Fee in the “Monthly Fee”). (b) In addition event of any Deficiency for such Fiscal Year, to the Monthly Fee, Franchisee shall pay extent of the Deficiency remaining after reduction of the Basic Fee in accordance with Section 6.01(a). The obligation of Franchisor a monthly royalty on certain food items that Franchisor has negotiated deviated pricing, with the royalty rate for each food item set opposite the name of such food item to reduce or eliminate its Continuing Royalty Fee in Exhibit C attached hereto (the “Food Royalty Fee”). (c) In addition any Fiscal Year is limited to the Monthly full amount of the Deficiency for such Fiscal Year only, and the Continuing Royalty Fee for any Fiscal Year shall not be reduced as a result of any Deficiency in any prior or subsequent Fiscal Year. Owner hereby agrees that, for any Fiscal Year, the combined obligation of Franchisor and Manager to reduce their respective fees as set forth in this Section 6.04 and Section 6.01 shall not exceed the amount of the Deficiency for such Fiscal Year. In each Fiscal Year during which both the Continuing Royalty Fee and the Food Basic Fee are reduced due to a Deficiency, the Basic Fee shall be reduced in full before the Continuing Royalty Fee is reduced to cover any remaining amount of the Deficiency. To the extent Franchisor has received any such Continuing Royalty Fee it will remit such fees to Owner as determined herein. An example of the calculation and payment of Basic Fee, Franchisee shall pay Franchisor a monthly royalty on the items set forth in Exhibit D attached hereto (hereinafter referred to as the “Other Incentive Fee and Continuing Royalty Fee”, and with the Monthly Fee and the Food Royalty Fee collectively, the “Franchise Fees”). Currently, the Other Royalty Fee reduction of fees is one percent (1%) on all purchases on the items set forth in on Exhibit D. (d) For 2012A hereto, the maximum aggregate amount payable in any month by Franchisee including for the Monthly Fee, Food Royalty Fee and Other Royalty Fee shall be capped at $1,500 per month (the “Monthly Cap”). For each subsequent periods that are less than a full calendar year, the Franchisor may increase the Monthly Cap by up to 3% or by the consumer price index for the previous year (as published by the Bureau of Labor Statistics of the United States Department of Labor), whichever is the greater. (e) Franchisor has Effective as of the rightEffective Date, at its sole discretion, the following Article 18 is hereby added to amend, update or change the items listed in Exhibit C, Exhibit D, and the Taste of Philly order guide, at any time. Franchisee acknowledges Franchisor’s right to collect fees, rebates, and marketing allowances from food distributors, food manufacturers, food brokers, or other vendors or suppliers, as well as from Franchisee. Franchisee shall have no claim for offset or a reduction in fees with respect to any fees Franchisor may negotiate from any other party.Management Agreement: