Terms & Conditions

The below mentioned terms and conditions are applied to all franchise, who are in the agreement of working with 911 restoration Franchisees.

Royalty Reports

Royalty Reports are due on the 10th of every month with bank statement and all other supporting documents whenever needed.

Royalty Fee.

Franchisee shall pay Franchisor a Royalty Fee (“Royalty Fee”) of ten percent (10%) of Gross Revenue for Restoration Services. For services other than Restoration Services, including, without limitation, construction, repair, remodeling or reconstruction services (“Non-Restoration Services”),

Subcontractor Expenses and Reports.

Franchisee may deduct the amount of expenses incurred by Franchisee for certain outside services performed by independent third party contractors Franchisee retains to assist Franchisee in providing Restoration Services that Franchisee does not bill to Franchisee’s customers (“Subcontractor Expenses”) from Gross Revenue in the manner provided in this Section 8.7.

“Subcontractor Expenses” means amounts actually paid by Franchisee to unaffiliated electricians, plumbers, moving companies and certified mold testing vendors and the like and amounts actually paid by Franchisee for a local marketer, commercial desiccants and the rental of heavy and specialty equipment, such as commercial generators, lifts, air conditioners, and the fuel to operate the same.“Subcontractor Expenses” do not include payments for services that Franchisee must normally perform itself as Restoration Services. If there is any controversy as to whether or not a particular expense qualifies as an allowable Subcontractor Expense, Franchisor’s decision will be controlling.

Franchisee shall provide Franchisor with supporting documentation for all Subcontractor Expenses incurred by Franchisee on the 10th day of each month in the form of invoices from all subcontractors and copies of the Xactimates for which the Subcontractor Expenses are claimed. If Franchisee provides Franchisor with supporting documentation to verify the Subcontractor Expenses in a form satisfactory to Franchisor, as determined by Franchisor in Franchisor’s sole and absolute discretion, the amount of the allowable Subcontractor Expenses shall be credited against the Gross Revenue reported by Franchisee for the previous month and Franchisor shall calculate the Royalty Fee payable by Franchisee for the previous month for Restoration Services by deducting the amount of the allowable Subcontractor Expenses from Gross Revenue for that month.

Franchisee shall pay Franchisor a Royalty Fee of three percent (3%) of Gross Revenue for the Non-Restoration Services. construction, repair, remodeling or reconstruction services.- No deduction are allowed on any of the build back job.

Payment Date

Royalty Fees are payable on the 15th day of each month. If the 15th day of any month is not a business day, Royalty Fees must be paid on the next business day immediately following the 15th day of that month.

Manner of Payment and Computation of Payments.

Franchisee shall pay Franchisor all amounts due and owing under this Agreement from Franchisee’s bank account by electronic funds transfer (“EFT”) or other automatic payment mechanism that Franchisor may designate. Promptly upon Franchisor’s request, Franchisee shall execute and deliver to Franchisor the EFT payment form attached to this Agreement as Exhibit E and all pre-authorized check forms and other instruments or drafts required by (2018) 911 RESTORATION FDD FRANCHISE AGREEMENT B-18.

Franchisor’s bank, payable against Franchisee’s bank account, to enable Franchisor to draw Franchisee’s Royalty Fees and other sums payable under the terms of this Agreement. Franchisee shall maintain a single bank account for all EFT payments and shall maintain such minimum balance in this account in the amount that Franchisor may reasonably specify from time to time. Franchisee shall not alter or close this account except with Franchisor’s prior written approval. Any failure by Franchisee to implement or maintain Franchisor’s access to its bank account in strict accordance with Franchisor’s instructions shall constitute a material default of this Agreement.

Late Fee.

In the event Franchisee fails to pay any of the required fees, royalties or contributions, or any other amount due to Franchisor in the time as specified in this Agreement, or Franchisee fails to provide both the Gross Revenue Report and bank statement to Franchisor by the due date, Franchisee will pay (in addition to other rights, remedies and remunerations) a late fee of $50 per day for each day said payment, Gross Revenue report and/or bank statement is late.