Sales Promotion Program Fee Sample Clauses
The Sales Promotion Program Fee clause defines the charges or fees that a party must pay to participate in a sales promotion program organized by another party, typically a supplier or manufacturer. This clause outlines the basis for calculating the fee, such as a fixed amount, a percentage of sales, or other agreed metrics, and may specify payment terms, timing, and any conditions for adjustments or refunds. Its core function is to ensure both parties clearly understand the financial obligations associated with participating in promotional activities, thereby preventing disputes and facilitating smooth execution of the promotion.
Sales Promotion Program Fee. Licensee shall pay to Licensor a sales promotion fee to be expended in accordance with the provisions of Paragraph 6.
1. The sales promotion fee shall be a sum equal to not less than 3% nor more than 6% of Licensee's gross retail sales (net of sales taxes), including both dairy product and food service sales, from Licensee's Store. Licensor shall notify Licensee of the exact percentage by January of each year. (Except no notification will be given with respect to any year for which the percentage is to be unchanged from the preceding year). Such percentage shall be the same as that to be employed during such succeeding year by the majority of "Dairy Queen" licensees within the marketing area as determined by Licensor within which Licensee's Store is located. This sales promotion fee (and the license fee provided for in Paragraph 9.1) are in addition to, and not in lieu of, any fees (other than sales promotion or advertising fees) required to be paid pursuant to Licensee's above-referenced "Dairy Queen" franchise agreement; the sales promotion fee herein provided for shall supersede and replace any sales promotion or advertising fees required to be paid by Licensee to Licensor under any other such franchise or License agreement. RE: Section III of page 2, Addendum 4A to the "Agreement