As per the Franchise Agreement, all royalty fees payable to SAGH are to be paid via the transferring attorney. It is considered a material breach of contract for any franchisee to collect the royalties and then to pay them over to the Franchisor at a later date. The Franchisee is responsible to verify that payment has been made to the Franchisor.
Should a franchisee breach this clause in their agreement and be notified of such more than three occasions within one year, the Franchisor has a right to cancel the agreement, exercise its step-in right, and take the matter to arbitration if necessary.
The monthly Franchisor account is due and payable on or before the 7th of each and every month. Late payment is not permissible as fees have already been paid by the Franchisor on behalf of the Franchisee to its respective service providers.
Any orders pending after the 7th of the month; where accounts have not been paid, will not be processed until the account has been paid.