What is the highest lawful interest rate that All Dogs Unleashed can charge on late payments?
All_Dogs_Unleashed Franchise · 2025 FDDAnswer from 2025 FDD Document
ty Fee and other amounts owed under this Agreement upon receipt of written notice by Franchisor. Your failure to have sufficient funds in the Account is a material breach of this Agreement.
- 4.8. Interest; Nonsufficient Funds Charge. Any payments not received by Franchisor by the Due Date will accrue interest at the rate of 18% per annum or the highest lawful interest rate permitted by the jurisdiction in which the Franchised Business operates, whichever is less. If any check, draft, electronic or otherwise, is returned for insufficient funds, you shall pay to Franchisor a nonsufficient funds charge in the amount of the then current fee, which is currently $100, and reimburse Franchisor for all expenses that it incurs on account of such nonsufficient funds. These charges are in addition to any other rights or remedies Franchisor may have under this Agreement or applicable law. If you fail to submit your Gross Sales statement or any
Source: Item 23 — RECEIPTS (FDD pages 49–158)
What This Means (2025 FDD)
According to All Dogs Unleashed's 2025 Franchise Disclosure Document, any payments not received by the due date will accrue interest. The interest rate will be 18% per annum, or the highest lawful interest rate permitted by the jurisdiction in which the All Dogs Unleashed franchised business operates, whichever is less.
This means that if the state or local laws where the franchise is located have a maximum interest rate lower than 18%, that lower rate will apply. This protects the franchisee from being charged an illegally high interest rate on late payments. It is the franchisee's responsibility to be aware of the laws in their jurisdiction regarding interest rates.
Additionally, if a payment is returned due to insufficient funds, All Dogs Unleashed franchisees will be charged a fee. The current fee is $100, and the franchisee will also be responsible for reimbursing All Dogs Unleashed for any expenses incurred because of the returned payment. All Dogs Unleashed also has the right to impose a reasonable late fee, currently $100 per late payment, if the franchisee fails to submit their Gross Sales statement or any other required information.