What is the interest rate charged on overdue Continuing Fees for a 360 Painting franchise?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee's bank to pay and deposit directly to the account designated by Franchisor all Continuing Fees due hereunder. Every week, Franchisee shall make deposits to the account sufficient to cover amounts owed to Franchisor for the preceding week just ended. Franchisee shall execute any documents Franchisor's or Franchisee's bank requires to establish and implement the automated bank draft system. Once such a system is established, Franchisee shall not close the account from which automated bank drafts are being withdrawn without Franchisor's written consent.
- 5.3 Late Payments and Insufficient Funds. All overdue payments for Continuing Fees required to be paid hereunder shall bear interest from the date due at the rate of 1.5% per month, or the highest rate permitted by law, whichever is less. Interest shall accrue on all late payments regardless of whether Franchisor exercises its righ
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 56)
What This Means (2025 FDD)
According to the 2025 360 Painting Franchise Disclosure Document, overdue payments for Continuing Fees will incur interest. The interest rate is 1.5% per month, or the highest rate permitted by law, whichever is less. This interest accrues from the date the payment was originally due, regardless of whether 360 Painting chooses to terminate the Franchise Agreement due to the late payment.
In addition to interest, 360 Painting may charge a $100 late payment fee for all overdue payments, or the maximum amount permitted by applicable law. There is also a $100 insufficient funds fee for each check, automated bank draft payment, or other payment method that is not honored by the franchisee's financial institution. 360 Painting retains the right to offset any amounts the franchisee owes against any amounts 360 Painting may owe the franchisee.
Franchisees should be aware of these late payment terms to avoid incurring additional fees and interest charges. Maintaining timely payments is crucial for remaining in good standing with 360 Painting and avoiding potential disruptions to the franchise agreement. Franchisees should also be aware that 360 Painting has the discretion to apply payments to past due indebtedness, regardless of any designation made by the franchisee.