What is the maximum interest rate that Amerispec Inspection Services can charge on past-due amounts?
Amerispec_Inspection_Services Franchise · 2025 FDDAnswer from 2025 FDD Document
In the event the Franchisee fails to pay any amounts owed to the Company, Franchisee will pay the Company, in addition to the overdue amount, interest on that amount from the date the amount was due until it is paid at the rate of 1.5% per month, or the maximum rate permitted by law, whichever is less.
Entitlement to such interest will be in addition to the Company's right to employ a collections agency to collect monies due to the Company.
In such event, the Franchisee shall also be responsible for paying any and all fees associated with collection, including but not limited to administration costs, attorneys' fees, and cost of litigation.
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 fails to pay amounts owed to the company, Amerispec Inspection Services can charge interest on the overdue amount. This interest accrues from the date the payment was originally due until it is paid in full.
The interest rate applied will be 1.5% per month. However, the FDD specifies that if the maximum interest rate permitted by law is less than 1.5% per month, then the legally allowed maximum rate will be applied instead.
In addition to interest on overdue amounts, Amerispec Inspection Services is entitled to employ a collections agency to recover the unpaid funds. If this occurs, the franchisee is responsible for covering all associated collection fees. These fees may include administration costs, attorney's fees, and the costs of litigation, potentially adding significantly to the amount owed.