What is the interest rate charged on late payments for an Antioch Pizza Shop?
Antioch_Pizza_Shop Franchise · 2025 FDDAnswer from 2025 FDD Document
- (f) Charge on Late Payments.
In addition to all other rights and remedies that accrue to Franchisor, late or overdue payments shall bear interest after the due date at the rate of the lesser of ten percent (10%) per annum or the highest applicable rate allowed by law.
Franchisee acknowledges that this provision does not constitute agreement by Franchisor to accept such
payments after they are due or a commitment to extend credit to, or otherwise finance such amounts.
- (g) No Withholding of Payment. Franchisee agrees that Franchisee will not, on the grounds of the alleged nonperformance by Franchisor of any of its obligations hereunder or for any other reason whatsoever, withhold payment of any amounts due, nor shall Franchisee have any right of offset.
Source: Item 22 — Contracts (FDD pages 56–57)
What This Means (2025 FDD)
According to the 2025 Franchise Disclosure Document, Antioch Pizza Shop charges interest on late payments. Specifically, overdue payments will accrue interest from the due date. The interest rate is the lesser of two options: ten percent (10%) per annum, or the highest applicable rate allowed by law.
This means that if a franchisee fails to make a payment on time, Antioch Pizza Shop has the right to charge interest on the outstanding balance. The actual interest rate applied will depend on the legal limits in the franchisee's jurisdiction; if the legal maximum is below 10%, that lower rate will apply. This policy is fairly standard in franchising, as it incentivizes timely payments and compensates the franchisor for the time value of money and administrative costs associated with collecting late payments.
It is important to note that Antioch Pizza Shop's policy of charging interest on late payments does not obligate them to accept late payments, nor does it constitute an agreement to extend credit or finance any amounts owed by the franchisee. Additionally, the franchisee is not allowed to withhold payments due to alleged nonperformance by Antioch Pizza Shop or for any other reason, and the franchisee does not have any right of offset.