For Atwell Suites, what is the late payment fee that AT&T may charge?
Atwell_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
AT&T may charge late payment fees at the lower of (a) 1.5% per month (18% per annum), or (b) the maximum rate allowed by law for overdue payments.
Eligible Participant will reimburse AT&T for all costs associated with collecting delinquent or dishonored payments, including reasonable attorneys' fees.
AT&T may require Eligible Participant or its Affiliates to tender a deposit if AT&T determines, in its reasonable judgment, that Eligible Participant or its Affiliates are not creditworthy, and AT&T may apply such deposit to any charges owed.
Source: Item 23 — Receipts (FDD pages 99–486)
What This Means (2025 FDD)
According to the 2025 Atwell Suites Franchise Disclosure Document, AT&T may charge late payment fees for overdue payments. The fee will be the lower of two options: either 1.5% per month (which equates to 18% per annum) or the maximum rate allowed by law in the relevant jurisdiction. This fee applies to any overdue amounts owed by the Eligible Participant.
This means that if an Atwell Suites franchisee is late on payments to AT&T for services, they will incur a late fee. The exact amount will depend on the prevailing legal limits on late fees, but it could be as high as 1.5% per month. Franchisees should be aware of this potential cost and ensure timely payments to avoid these charges.
It is important to note that the FDD also states that AT&T may require a deposit from the franchisee if they are deemed not creditworthy, and this deposit can be applied to any outstanding charges. Additionally, the franchisee is responsible for reimbursing AT&T for all costs associated with collecting delinquent or dishonored payments, including reasonable attorneys' fees. Therefore, maintaining good payment practices is crucial for an Atwell Suites franchisee to avoid additional financial burdens.