1. Section Scope & Legal Intent
2. Mandatory Standards & Operating Requirements
All participants subject to this policy must strictly adhere to the following mandatory standards:
- Franchisees must remit mandatory platform royalties and licensing fees on or before the 10th calendar day of each operating month.
- Franchisees must maintain standard GAAP/IFRS compliant accounting records and submit monthly certified regional revenue statements.
- ePaisay reserves the right to conduct unannounced on-site accounting audits of franchise financial ledgers once per calendar year.
3. Explicit Prohibitions & Violation Triggers
The following actions constitute direct non-compliance and trigger automatic intervention by the Warning and Violation System:
- Underreporting regional revenue, cash payments, or merchant onboarding fees to reduce royalty remittances.
- Refusing entry to platform appointed independent auditors or withholding financial documentation.
- Maintaining hidden off-book cash accounts for regional marketplace transactions.
4. Warning & Violation System Enforcement Matrix
Each violation under this section is mapped directly to the automated warning and sanction ladder:
| Violation Code | Offense Description | Detection Method | Severity Tier | Cure Window | Mandatory Sanction |
|---|---|---|---|---|---|
VIOL-364-01 |
Deliberate falsification of revenue statements or tax concealment. | External Financial Audit Finding | Tier 4 (Critical) | Immediate | Immediate franchise termination, legal prosecution for fraud, damages claim for full underreported sums + 20% penalty. |
VIOL-364-02 |
Late remittance of monthly platform royalties exceeding 15 days. | Automated Billing Reconciler | Tier 3 (High) | 5 Days | 2 Strike Points, 2% daily late surcharge, temporary hold on regional payouts. |
VIOL-364-03 |
Failure to submit monthly financial statements within prescribed deadline. | Finance Accounting Gatekeeper | Tier 1 (Advisory) | 7 Days | Administrative warning and temporary suspension of regional bonus pools. |
5. Platform Safe Harbor & Limitation of Liability
Platform Intermediary Status: ePaisay provides the technological marketplace venue connecting independent counterparties. ePaisay is not a vendor, retailer, agent, or guarantor of any product, service, or transaction governed herein.
Total Disclaimer of Warranties: The platform disclaims all warranties of merchantability, fitness for particular purpose, and non-infringement to the fullest extent permissible by applicable law.
Limitation of Damages: In no event shall ePaisay, its officers, directors, or employees be liable for incidental, indirect, punitive, or consequential damages. Aggregate liability is strictly capped at the lesser of $100 USD or platform fees paid in the preceding three months.
Participant Indemnification: The participant agrees to defend, indemnify, and hold harmless ePaisay against any third-party claims, regulatory penalties, legal fees, or damages arising out of violations of this Section.