What is the maximum monthly interest rate that Augusta Lawn Care charges on late payments?
Augusta_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
Any payment not received by Augusta Lawn Care when due will bear interest at the lesser of 1.5% per month or highest commercial contract interest rate late law allows per year or at the highest rate allowed by applicable law on the date when payment is due, whichever is less. Interest charges on late payments are intended to partially compensate Augusta Lawn Care for loss of use of the funds and for internal administrative costs resulting from late payment which would otherwise be difficult to measure precisely. The fact that such charges are imposed shall not be construed as a waiver of Augusta Lawn Care right to timely payment.
Source: Item 23 — RECEIPTS (FDD pages 44–184)
What This Means (2025 FDD)
According to Augusta Lawn Care's 2025 Franchise Disclosure Document, any payment not received when due will incur interest. The interest rate is capped at the lesser of 1.5% per month, the highest commercial contract interest rate allowed by law per year, or the highest rate permitted by applicable law on the payment due date.
This interest charge is intended to partially compensate Augusta Lawn Care for the loss of use of funds and cover internal administrative costs resulting from the late payment. These costs would otherwise be difficult to measure precisely.
It is important to note that imposing these charges does not waive Augusta Lawn Care's right to timely payment. Franchisees should be aware of this policy and ensure timely payments to avoid incurring interest charges.