What interest rate applies to late payments to Amorino?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
operating account the undisputed amount of fees reflected in the Fee Notice.
- O. Interest; Nonsufficient Funds Charge. Any payments not received by Amorino by the Due Date will accrue interest at the rate of eighteen percent (18%) per annum or the maximum lawful interest rate permitted by the jurisdiction in which the Store operates, whichever is lower. Our right to receive such interest shall be in addition to any other rights or remedies we may have with respect to late or unpaid payments under this Agreement. You shall be responsible for and bear the cost of any returned, stop payment or insufficient funds fees or any similar or related fees charged by any financial institutions or any electronic funds transfer network, including paying to Amorino a nonsufficient funds charge in the amount of $50 (which will increase to $100 for any second or more nonsufficient funds charge during any roll
Source: Item 22 — CONTRACTS (FDD pages 80–81)
What This Means (2025 FDD)
According to Amorino's 2025 Franchise Disclosure Document, any payments not received by Amorino by the due date will accrue interest. This interest is calculated at a rate of eighteen percent (18%) per annum. However, if the maximum lawful interest rate permitted by the jurisdiction in which the store operates is lower than 18%, the lower rate will apply.
This means that if an Amorino franchisee fails to make a payment on time, they will be charged interest on the outstanding amount. The specific interest rate will either be 18% annually, or the maximum legal rate in their area, whichever is less. This is a fairly standard clause in franchise agreements, as it protects the franchisor from losses due to late payments and incentivizes franchisees to pay on time.
In addition to interest on late payments, Amorino also charges a nonsufficient funds (NSF) fee. The initial NSF charge is $50, but this increases to $100 for any subsequent NSF charge within a rolling 12-month period. The franchisee is also responsible for reimbursing Amorino for all other expenses incurred due to the nonsufficient funds. This further emphasizes the importance of franchisees maintaining sufficient funds in their operating accounts to cover all payments to Amorino.