Under the Atwell Suites agreement, what is the required action if an invoice is received from SCH?
Atwell_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
Client shall pay the amounts agreed to herein upon receipt of invoices which shall be sent by SCH, and Client shall pay the amount of such invoices to SCH. Any fees or other amounts due under this Agreement not received by SCH on or before such invoice is due shall bear interest at the rate of one and a half percent (1.5%) per month, calculated on a daily basis, until paid in full.
Source: Item 23 — Receipts (FDD pages 99–486)
What This Means (2025 FDD)
According to Atwell Suites' 2025 Franchise Disclosure Document, if a franchisee (Client) receives an invoice from SCH, the franchisee is required to pay the amount of such invoices to SCH. If any fees or other amounts due under the agreement are not received by SCH on or before the invoice due date, these unpaid amounts will accrue interest.
The interest rate applied to overdue amounts is one and a half percent (1.5%) per month. This interest is calculated on a daily basis until the full amount is paid.
This invoicing and payment process is a standard practice in franchising, ensuring that the franchisor (SCH in this case) receives timely payments for services rendered. Franchisees should ensure they understand the payment terms and due dates to avoid incurring interest charges on late payments.