What late payment fees can AT&T charge Atwell Suites franchisees for overdue payments?
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.
- 4.5 Delayed Billing; Disputed Charges.
Eligible Participant will not be required to pay charges for Services initially invoiced more than twelve (12) months after close of the billing period in which the charges were incurred, except for calls assisted by an automated or live operator.
Separate from the preceding sentence, if Eligible Participant disputes a charge, Eligible Participant will provide notice to AT&T specifically identifying the charge and the reason it is disputed within twelve (12) months after the date of the invoice in which the disputed charge initially appears, or Eligible Participant waives the right to dispute the charge.
The portion of charges in dispute may be withheld and will not be considered overdue until AT&T completes its investigation of the dispute but Eligible Participant may incur late
payment fees in accordance with Section 4.4 (Payments). Following AT&T's notice of the results of its investigation to Eligible Participant, payment of all properly due charges and properly accrued late payment fees must be made within ten (10) business days. Bona fide disputes concerning invoices shall be addressed by the appropriate AT&T billing dispute center pursuant to AT&T's established methods and procedures, after the dispute is referred to the billing dispute center by either Eligible Participant or Eligible Participant's account team. Following AT&T's notice of the results of its investigation to Eligible Participant, payment of all properly due charges must be made within ten (10) business days and AT&T will reverse any late payment fees that were invoiced in error.
4.6 Credit Terms. AT&T retains a lien and purchase money security interest in each item of Purchased Equipment and Vendor Software until Eligible Participant pays all sums due. AT&T is authorized to sign and file a financing statement to perfect such security interest.
Source: Item 23 — Receipts (FDD pages 99–486)
What This Means (2025 FDD)
According to the 2025 Atwell Suites FDD, AT&T may charge Atwell Suites franchisees late payment fees for overdue payments. The fee will be the lower of either 1.5% per month (which equates to 18% per year) or the maximum rate allowed by law for overdue payments. Payment is due within 30 days after the invoice date. The invoice number must be referenced when payment is made. Payments must be in the currency specified on the invoice. AT&T may also require a deposit from the franchisee if they are deemed not creditworthy, and this deposit can be applied to any outstanding charges.
If an Atwell Suites franchisee fails to pay on time, they will be responsible for reimbursing AT&T for all costs associated with collecting the delinquent payments. This includes reasonable attorney's fees. If the franchisee disputes a charge, they must notify AT&T within 12 months of the invoice date, specifying the charge and the reason for the dispute. Failure to do so waives their right to dispute the charge. The disputed portion of the charges can be withheld without incurring late payment fees until AT&T completes its investigation.
After AT&T notifies the franchisee of the investigation results, all properly due charges and late payment fees must be paid within ten business days. If the late payment fees were incorrectly invoiced, AT&T will reverse them. AT&T also retains a lien and purchase money security interest in any purchased equipment and vendor software until all sums due are paid by the Atwell Suites franchisee.