When is the interest on overdue amounts payable to Alloy?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
penses to be paid include your attendees' |
| Name of Fee (1) | Amount | Date Due | Remarks |
|---|---|---|---|
| travel, lodging, meals, and wages | |||
| Insufficient Funds/Late Report Fee | $100 fee for late report/late payment, with fee increasing by $50 for each subsequent late report/late payment (up to a maximum of $250 for the fourth and any subsequent late report/late payment | On demand, if incurred | You must pay us this fee if there are not sufficient funds in your bank account to process payments owed to us and/or our affiliates or you are late in submitting reports. If you incur this fee three times in any 12 month period, we may terminate your Franchise Agreement without giving you the right to cure the default |
| Interest on Overdue Amounts | 12% per annum or the highest legal contract rate, whichever is less | Upon billing | Payable on all overdue amounts. Interest accrues from the original |
Source: Item 6 — OTHER FEES (FDD pages 15–20)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, interest on overdue amounts is payable upon billing. The interest accrues from the original due date until the payment is received in full. The interest rate is 12% per annum or the highest legal contract rate, whichever is less.
This means that if an Alloy franchisee fails to pay any amount due to Alloy on time, interest charges will immediately begin to accumulate. The franchisee will then be billed for this accrued interest, and payment will be due upon receipt of that bill.
Franchisees should be aware of this policy and ensure timely payments to avoid incurring interest charges. It is also important to understand what constitutes an 'overdue amount' under the Franchise Agreement, as this will trigger the interest charges. Keeping track of payment due dates and maintaining sufficient funds in the designated bank account for EFT withdrawals are crucial for managing this aspect of the franchise agreement.