Is there interest on unpaid amounts from the date due in an Angry Chickz franchise dispute?
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, franchisees may be subject to interest charges on late payments. Specifically, if a franchisee fails to pay all sums owed to Angry Chickz or its affiliates promptly when due, interest will accrue on the unpaid amounts from the date the payment was originally due.
The interest rate applied to these unpaid amounts 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 failing to make timely payments to Angry Chickz. Additionally, if a franchisee's 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, including bank fees. These bank fees will be at least $50.00, or the maximum amount allowable under applicable law, whichever is less.
This policy is fairly standard in franchising, as it incentivizes franchisees to make timely payments and compensates the franchisor for the administrative and financial burden of dealing with late payments. Prospective Angry Chickz franchisees should be aware of these potential charges and ensure they have sufficient financial resources to meet their obligations to the franchisor on time. Careful financial planning and management are essential to avoid incurring these additional costs.