What is the maximum interest rate that Aerus may charge on overdue amounts?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type Of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Interest | Lesser of 1½% per month or maximum rate allowed by applicable law. | On demand. | Interest may be charged on all overdue amounts. |
Source: Item 6 — Other Fees (FDD pages 20–27)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, Aerus may charge interest on all overdue amounts. The interest rate will be the lesser of 1½% per month or the maximum rate allowed by applicable law. This interest is due on demand.
For a prospective Aerus franchisee, this means that if you fail to pay fees or other amounts owed to Aerus on time, you could be charged interest. The specific interest rate will depend on both the 1½% monthly cap and what the law permits in your jurisdiction. It is important to understand the laws in your area to know the maximum allowable interest rate.
Franchisees should be aware of this policy and ensure timely payments to avoid incurring interest charges. It is a common practice for franchisors to charge interest on overdue amounts to encourage prompt payment and to compensate for the administrative costs and potential financial losses associated with late payments.