What interest rate does Angry Chickz charge on late payments?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
r any of its Affiliates under this Agreement or any other agreement, Company shall have the absolute right to apply any payments received from Franchisee to any obligation owed Company or such Affiliate, notwithstanding any contrary designation by Franchisee.
- 4.10 Interest and Charges for Late Payments. If Franchisee fails to pay to Company all sums owed to Company or its Affiliates promptly when due, Franchisee shall pay interest on the unpaid amounts from the date due, at the rate of 18% per annum, or the highest rate allowable under Applicable Law, whichever is less. If any check, draft or electronic tra
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, if a franchisee fails to make payments to Angry Chickz or its affiliates when due, interest will accrue on the unpaid balance. The interest rate applied will be 18% per annum, or the highest rate allowable under applicable law, whichever is less. This means that franchisees could face a significant financial penalty for late payments, potentially increasing their overall costs.
In addition to interest on late payments, Angry Chickz also charges fees for returned payments. If a check, draft, or electronic transfer is unpaid due to insufficient funds or any other reason, the franchisee will be responsible for covering Angry Chickz's expenses related to the non-payment. This includes a minimum bank fee of $50.00, or the maximum amount permitted by applicable law, whichever is less.
These financial penalties underscore the importance of franchisees maintaining sufficient funds and adhering to the payment terms outlined in the franchise agreement. The combination of interest charges and returned payment fees could create a substantial financial burden for franchisees who experience cash flow issues or fail to manage their payments effectively. Franchisees should ensure they understand these terms and have systems in place to avoid late or failed payments to Angry Chickz.