A. Following the issuance and acceptance of a franchise, the grantee shall pay to the grantor a franchise fee in the amount set forth in the franchise agreement.
B. The grantor, on a quarterly basis, shall be furnished a statement within ninety (90) days of the close of the calendar quarter, certified by the company controller or chief financial officer, reflecting the total amounts of gross revenues and all payments, and computations of the franchise fee for the previous calendar quarter. Upon ten (10) days' prior written notice, grantor shall have the right to conduct an independent audit of grantee's records. If such audit indicates a franchise fee underpayment of five percent (5%) or more, the grantee shall assume all of City's out-of-pocket costs associated with the conduct of such an audit and shall remit to grantor all applicable franchise fees due and payable together with interest thereon at the lesser of the maximum rate permitted by applicable laws or eighteen percent (18%) per annum.
C. Except as otherwise provided by law, no acceptance of any payment by the grantor shall be construed as a release or as an accord and satisfaction of any claim the grantor may have for further or additional sums payable as a franchise fee under this Chapter or any franchise agreement or for the performance of any other obligation of the grantee.
D. In the event that any franchise fee payment or recomputed amount is not made on or before the dates specified in the franchise agreement, grantee shall pay as additional compensation an interest charge, computed from such due date, at an annual rate equal to the lesser of the maximum rate permitted by applicable laws or eighteen percent (18%) per annum during the period for which payment was due.
E. Franchise fee payments shall be made in accordance with the schedule indicated in the franchise agreement. (Ord. 636, sec. 1, 11-2-1998)