What is the interest rate charged on overdue payments to Amerispec Inspection Services?
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's 2025 Franchise Disclosure Document, any payment not received by the company by the due date is considered overdue. If a payment is overdue, Amerispec Inspection Services will charge interest on the overdue amount from the date it was due until it is paid. The interest rate is 1.5% per month, or the maximum rate permitted by law, whichever is less.
In addition to interest on overdue payments, Amerispec Inspection Services also charges a delinquency fee for overdue reports. The delinquency fee is $50.00 per delinquent report. These charges are in addition to any other remedies that Amerispec Inspection Services may pursue for late payments or reports.
This policy ensures that Amerispec Inspection Services franchisees have a financial incentive to make timely payments and submit reports. Franchisees should be aware of these potential charges and factor them into their financial planning to avoid incurring unnecessary costs. It is common practice in the franchise industry to charge interest and fees on overdue payments to encourage franchisees to meet their financial obligations promptly.