When is the interest due on overdue amounts for an All States M.E.D. franchise?
All_States_M_E_D Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Interest | Lesser of 1.5% per month or the highest commercial contract interest rate allowed by law | 15 days after billing | Due on all overdue amounts. FA 3.5. |
Source: Item 6 — OTHER FEES (FDD pages 12–16)
What This Means (2024 FDD)
According to All States M.E.D.'s 2024 Franchise Disclosure Document, interest on overdue amounts is due 15 days after billing. The interest rate will be the lesser of 1.5% per month or the highest commercial contract interest rate allowed by law. This applies to all overdue amounts owed to All States M.E.D.
This means that if an All States M.E.D. franchisee fails to pay any amount due to the franchisor on time, interest will start accruing 15 days after the franchisee receives the bill for the overdue amount. The interest rate is capped at 1.5% per month, but could be lower if state law mandates a lower maximum commercial contract interest rate.
For a prospective franchisee, this highlights the importance of paying all fees and other amounts owed to All States M.E.D. on time to avoid incurring interest charges. Franchisees should also be aware of the specific commercial contract interest rate laws in their state, as this could affect the amount of interest charged on overdue amounts.