What is the interest rate charged by Amerispec Inspection Services on overdue amounts?
Amerispec_Inspection_Services Franchise · 2025 FDDAnswer from 2025 FDD Document
the Company in the manuals or otherwise in writing for the preceding calendar month, and shall be submitted to the Company together with any monthly reports required under this Agreement. Any payment or report not actually received by the Company on or before such date shall be deemed overdue. If any payment is overdue, the Franchisee shall pay the Company, in addition to the overdue amount, interest on such amount from the date it was due until paid at the rate of 1.5% per month or the maximum rate permitted by law, whichever is less. If any report is overdue, the Franchisee shall pa
Source: Item 23 — Receipts (FDD pages 47–172)
What This Means (2025 FDD)
According to Amerispec Inspection Services' 2025 Franchise Disclosure Document, if a franchisee's payment is overdue, Amerispec Inspection Services will charge interest on the overdue amount. The interest rate is 1.5% per month, or the maximum rate permitted by law, whichever is less. The interest is calculated from the date the payment was originally due until it is paid in full.
In addition to interest, Amerispec Inspection Services may also impose a delinquency fee of $50.00 per delinquent report if a report is overdue. These charges are in addition to any other remedies Amerispec Inspection Services may pursue for the overdue payment or report.
Franchisees should be aware of these interest and fee policies to avoid incurring additional costs. It is common practice in franchising for franchisors to charge interest on overdue payments to encourage timely payments and to compensate for the administrative costs associated with collecting overdue amounts.