§ 12.768. Franchise fee.

Sec. 1.18.

A.

Following the issuance and acceptance of the franchise, the Grantee shall pay to the Grantor a Franchise Fee in the amount set forth in the Franchise Agreement.

B.

The Grantor, on an annual basis, shall be furnished a statement within sixty (60) days of the close of the calendar year, either audited and certified by an independent Certified Public Accountant or certified by an officer of the Grantee, reflecting the total gross annual receipts for the period covered by the payment. Upon ten (10) days prior written notice, Grantor shall have the right to conduct an independent audit of Grantee's records, in accordance with Generally Accepted Accounting Procedures, and if such audit indicates a Franchise Fee underpayment of three percent (3%) or more, the Grantee shall assume all reasonable costs of such as audit.

C.

Except as otherwise provided by law, no acceptance of any payment by the Grantor shall be constructed 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 ordinance or for the performance of any other obligation of the Grantee.

D.

In the event that any franchise payment or recomputed amount is not made on or before the dates specified in the Franchise Agreement, Grantee shall pay as additional compensation:

(1)

An interest charge, computed from such due date, at an annual rate equal to the prime lending rate of the National Bank of Detroit plus one percent (1%) during the period for which payment was due; and

(2)

If the payment is late by forty-five (45) days or more, a sum of money equal to five percent (5%) of the amount due in order to defray those additional expenses and costs incurred by the Grantor by reason of delinquent payment.

E.

Franchise fee payments shall be made in accordance with the schedule indicated in the Franchise Agreement.

(ord. eff. Nov. 17, 1992; amend. eff. Jan. 21, 1997)