(A) Annual franchise payments. The grantee of a franchise shall pay to the grantor an annual fee in an amount as designated in the franchise agreement, but in no event less than 5% of the annual gross revenues. Such payment shall be in addition to any other and commence as of the effective date of the franchise. In the event of a dispute, the grantor, if it so requests, shall be furnished a statement of such payment by a certified public accountant reflecting the total amounts of annual gross revenues and the charges, deductions and computations for the period covered by the payment.
(B) Acceptance by the grantor. 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 pursuant to this chapter or for the performance of any other obligation of the grantee.
(C) Failure to make required payments. In the event any franchise payment or recomputed amount is not made on or before the dates specified in this section, the grantee shall pay as additional compensation:
(1) An interest charge, computed from such due date, at the annual rate equal to the commercial prime interest rate in effect upon the due date; and
(2) A sum of money equal to 5% of the amount due in order to defray those additional expenses and costs incurred by the grantor by reason of the delinquent payment.
(D) Quarterly payments. The payment due the grantor under this section shall be computed quarterly, for the preceding quarter, as of March 31, June 30, September 30 and December 31. Each quarterly payment shall be due and payable no later than 30 days after such dates. Each payment shall be accompanied by a brief report showing the basis for the computation and such other relevant facts as may be required by the grantor.
(E) Credits. Following the issuance and acceptance of the franchise, the grantee shall initiate franchise fee payments to the grantor at the minimum rate specified in the franchise agreement. Such initial payments shall be credited against payments due in later years of the franchise inasmuch as they exceed the actual franchise payments due during any year.
('65 Code, § 7-8.409) (Ord. 244-C.S., passed - - )