What is the maximum finance charge that Apricot Lane may impose on late payments?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks* |
|---|---|---|---|
| Finance Charge | Lower of 18% or highest legal rate for open account business credit accrued from due date | On demand after due dates of late payment | Imposing the finance charge does not excuse your late payment or commit us to extend credit to you |
Source: Item 6 — OTHER FEES (FDD pages 11–14)
What This Means (2025 FDD)
According to Apricot Lane's 2025 Franchise Disclosure Document, the franchisor may impose a finance charge on late payments. This charge will be the lower of 18% or the highest legal rate for open account business credit, accrued from the due date of the late payment.
This finance charge is in addition to any late fees that Apricot Lane may charge. The imposition of the finance charge does not excuse the franchisee's late payment, nor does it commit Apricot Lane to extend credit to the franchisee.
Prospective franchisees should be aware of these potential charges and ensure they understand the payment terms outlined in the Franchise Agreement to avoid incurring these fees. It is important to maintain timely payments and reports to Apricot Lane to prevent these additional costs.