What is the interest rate on late payments for a 1-800-GOT-JUNK? franchise?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
Name of Fee Amount Due Date Remarks Interest on late payments 24% per year or the highest rate allowed by the state where you are located. Upon demand. Payable on all overdue amounts accruing from the date payment is due until payment is received by us. See Section 23.1 of the Franchise Agreement.
Source: Item 6 — Other Fees (FDD pages 11–17)
What This Means (2025 FDD)
According to the 2025 1-800-GOT-JUNK? Franchise Disclosure Document, franchisees are subject to an interest rate on late payments. This interest accrues on all overdue amounts from the date the payment was due until the date 1-800-GOT-JUNK? receives the payment. The interest rate is set at 24% per year, or the highest rate allowed by the state where the franchisee is located, as detailed in Section 23.1 of the Franchise Agreement.
This means that if a franchisee fails to make a payment on time, they will incur interest charges on the outstanding balance. The specific amount of interest charged will depend on the size of the overdue amount and the duration of the delay. Franchisees should be aware of this policy and ensure timely payments to avoid these additional costs.
Prospective franchisees should take note of this potential expense and factor it into their financial planning. Understanding the terms for late payments is crucial for maintaining a healthy financial relationship with 1-800-GOT-JUNK? and avoiding unnecessary fees. It is also important to be aware of Section 23.1 of the Franchise Agreement, which contains further details regarding late payments.