What interest rate will Angry Chickz charge on late payments from franchisees?
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, the franchisee will incur interest on the unpaid amount. This interest will accrue from the date the payment was originally due. The interest rate applied will be 18% per annum, or the highest rate allowable under applicable law, whichever is less.
In addition to interest on late payments, Angry Chickz also specifies charges for instances of non-sufficient funds (NSF). If a franchisee's check, draft, or electronic transfer is unpaid due to insufficient funds or any other reason, the franchisee is responsible for covering Angry Chickz's expenses resulting from the non-payment. These expenses include bank fees, which will be a minimum of $50.00, or the maximum amount allowable under applicable law, whichever is less.
These stipulations regarding late payments and NSF charges are fairly standard in franchising. Franchisees should ensure they have sufficient funds and make timely payments to avoid these additional costs. It is important to note that the interest rate could be lower than 18% if local laws mandate a lower maximum rate.