Does Amerispec Inspection Services have the right to charge interest on overdue amounts?
Amerispec_Inspection_Services Franchise · 2025 FDDAnswer from 2025 FDD Document
- 20.3 Right to Interest and Costs.
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's 2025 Franchise Disclosure Document, Amerispec Inspection Services has the right to charge interest on overdue amounts. Specifically, if a franchisee fails to pay any amount owed to Amerispec Inspection Services, the franchisee will be required to pay interest on the overdue amount.
The interest will be calculated from the date the payment was originally due until it is fully paid. The interest rate will be 1.5% per month, or the maximum rate permitted by law, whichever is less. This interest charge is in addition to Amerispec Inspection Services's right to employ a collections agency to recover the outstanding debt.
Furthermore, the franchisee is responsible for covering all expenses associated with the collection process. These expenses include, but are not limited to, administrative costs, attorney's fees, and the cost of any litigation necessary to recover the funds. This means that overdue payments can result in significant additional costs for the franchisee beyond the original amount owed and the accruing interest.