What is the interest rate charged on overdue royalty 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 the 2025 Amerispec Inspection Services FDD, if a franchisee's payment is overdue, Amerispec Inspection Services will charge interest on the overdue amount. This interest accrues from the date the payment was originally due until it is actually paid. The interest rate applied 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 for a late report is $50.00 per report. This fee is in addition to any other remedies that Amerispec Inspection Services may pursue for the late payment or report.
Amerispec Inspection Services requires franchisees to participate in an electronic funds transfer and reporting program for all payments. If a franchisee fails to have sufficient funds available for any monthly fees, interest and delinquency fees will be applied to the franchisee's account. This policy ensures that Amerispec Inspection Services has a consistent method for receiving payments and addressing any late payments from franchisees.