The Grantee, in this case, the entity purchasing the franchise, shall pay to Grantor (Owner of the franchise and its rights) a franchise fee determined by the provisions of this section. It is recognized that the Grantee has or will effectively enter into a franchise agreement(s) with the Grantor with fee provisions similar to this one, and that the total yearly Franchisor’s Fee will be calculated based on the gross sales occurring during each year within jurisdictions the Grantee operates in.
The Grantee is responsible to declare, annually, the gross sales the franchise generates in intervals as per the terms of this agreement (Declaration of Gross Revenues). This declaration is required not only for any Franchisor’s Fees listed above, but as stipulated for any other Franchisor rights, royalties, and as required by law for local and/or federal tax purposes not otherwise stated herein.
In addition, the Grantee shall remain responsible for paying to the local jurisdictions (city, county, state, etc., as appropriate), throughout the length of this agreement, the:
Taxes (State, City, and Federal)
Fee for permissions to use the City's Rights-of-Way
Any fees/costs arising from conducting or advertising the business
In its sole and absolute discretion, the Franchise owner may raise the National Marketing Fee up to a maximum amount of 3% of Gross Revenue generated with at least four months written notice beforehand.