Common use of CONTINUING FEES Clause in Contracts

CONTINUING FEES. During the term of each Franchise Agreement signed by the FRANCHISEE, the FRANCHISEE will pay to CITY LOOKS weekly Continuing Fees, as defined in the Franchise Agreement, equal to a percentage of the weekly Gross Revenues, as defined in the Franchise Agreement, which are received, billed or generated by or from the FRANCHISEE'S City Looks businesses in the Franchised Area. For the first (1st) through the seventeenth (17th) weeks of the FRANCHISEE'S operation of each of the City Looks businesses opened and operated pursuant to this Agreement, the FRANCHISEE will not be obligated to pay a Continuing Fee to CITY LOOKS. For the eighteenth (18th) through the thirty-fourth (34th) weeks of the FRANCHISEE'S operation of each of its City Looks businesses, the FRANCHISEE will pay to CITY LOOKS a weekly Continuing Fee equal to two percent (2%) of the FRANCHISEE'S Gross Revenues. For the thirty-fifth (35th) week of the FRANCHISEE'S operation of each of the City Looks businesses opened and operated pursuant to this Agreement and thereafter for the balance of the remaining term of the applicable Franchise Agreement, the FRANCHISEE will pay to CITY LOOKS a weekly Continuing Fee equal to four percent (4%) of the FRANCHISEE'S Gross Revenues; provided, however, that commencing with the fifty-third (53rd) week of the FRANCHISEE'S operation of each of its City Looks businesses, and continuing throughout the remaining term of the Franchise Agreements for the City Looks businesses, the FRANCHISEE will pay to CITY LOOKS a weekly Continuing Fee equal to the greater of four percent (4%) of the FRANCHISEE'S weekly Gross Revenues or One Hundred Dollars ($100) per week. The FRANCHISEE will pay Continuing Fees to CITY LOOKS at the applicable rate stated in the preceding sentences, even if the Franchise Agreements signed by the FRANCHISEE specify Continuing Fees that are greater than or different from the Continuing Fees specified herein. With the possible exception of the percentage of the FRANCHISEE'S Gross Revenues which will be payable to CITY LOOKS, the Continuing Fees for each of the FRANCHISEE'S City Looks businesses will be payable by the FRANCHISEE according to the terms of the applicable Franchise Agreements signed by the FRANCHISEE pursuant to this Agreement.

CONTINUING FEES. During the term of each Franchise Agreement signed by the FRANCHISEEFRANCHISEE pursuant to this Agreement, the FRANCHISEE will pay to CITY LOOKS COST CUTTERS weekly Continuing Fees, as defined in the Franchise Agreement, equal to a percentage of the weekly Gross Revenues, as defined in the Franchise Agreement, which are received, billed or generated by or from the FRANCHISEE'S City Looks businesses Cost Cutters Businesses in the Franchised Area. For the first (1st) through the seventeenth (17th) weeks of the FRANCHISEE'S operation of each of the City Looks businesses Cost Cutters Businesses opened and operated pursuant to this Agreement, the FRANCHISEE will not be obligated to pay a Continuing Fee to CITY LOOKSCOST CUTTERS. For the eighteenth (18th) through the thirty-fourth (34th) weeks of the FRANCHISEE'S operation of each of its City Looks businessesCost Cutters Businesses, the FRANCHISEE will pay to CITY LOOKS COST CUTTERS a weekly Continuing Fee equal to two four percent (24%) of the FRANCHISEE'S Gross Revenues. For the thirty-fifth (35th) week of the FRANCHISEE'S operation of each of the City Looks businesses Cost Cutters Businesses opened and operated pursuant to this Agreement Agreement, and thereafter for the balance of the remaining term of the applicable Franchise Agreement, the FRANCHISEE will pay to CITY LOOKS COST CUTTERS a weekly Continuing Fee equal to four six percent (46%) of the FRANCHISEE'S Gross Revenues; provided, however, that commencing with the fifty-third (53rd) week of the FRANCHISEE'S operation of each of its City Looks businessesCost Cutters Businesses, and continuing throughout the remaining term of the Franchise Agreements for the City Looks businessesCost Cutters Businesses, the FRANCHISEE will pay to CITY LOOKS COST CUTTERS a weekly Continuing Fee equal to the greater of four six percent (46%) of the FRANCHISEE'S weekly Gross Revenues or One Hundred Dollars ($100) per week. Notwithstanding the foregoing, for as long as, but only so long as, the FRANCHISEE owns and operates eleven (11) or more Cost Cutters Businesses, the FRANCHISEE will be obligated to pay COST CUTTERS weekly Continuing Fees equal to four percent (4%) of the FRANCHISEE'S weekly Gross Revenues for the eleventh (11th) and any subsequent Cost Cutters Business. This reduction in Continuing Fees will apply only to the eleventh (11th) and any subsequent Cost Cutters Businesses owned and operated by the FRANCHISEE and the rates, steps and minimum set forth in the second, third and forth sentences of this Article 4.4 shall never apply to the first ten (10) Cost Cutters Businesses being owned and operated by the FRANCHISEE. The FRANCHISEE will pay Continuing Fees to CITY LOOKS COST CUTTERS at the applicable rate stated in the preceding sentences, even if the Franchise Agreements signed by the FRANCHISEE specify Continuing Fees that are greater than or different from the Continuing Fees specified herein. With the possible exception of the percentage of the FRANCHISEE'S Gross Revenues which will be payable to CITY LOOKSCOST CUTTERS, the Continuing Fees for each of the FRANCHISEE'S City Looks businesses Cost Cutters Businesses will be payable by the FRANCHISEE according to the terms of the applicable Franchise Agreements signed by the FRANCHISEE pursuant to this Agreement.