What is the interest rate charged by Auntie Annes on past due amounts?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Fee1, 3 | Amount | Date Due | Remarks |
|---|---|---|---|
| Reinstatement Fee | 10% of the amount of the then-current Initial Franchise Fee, plus Royalty Fees that would have been payable in period between termination and reinstatement | Before reinstatement | If we terminate your Franchise Agreement due to a health and safety default, you cure the default and want to be reinstated, and we agree to reinstate your Franchise Agreement, you must pay us a reinstatement fee. |
| De-identification Fee | Our actual costs, plus interest and an administrative fee equal to 15% of our actual costs | On invoice | Payable if we terminate the Franchise Agreement, you fail to de-identify the Shop, and we make the required changes on your behalf. |
Source: Item 6 — OTHER FEES (FDD pages 30–44)
What This Means (2024 FDD)
Based on the 2024 Auntie Annes Franchise Disclosure Document, the specific interest rate charged on past due amounts is not explicitly stated within the provided excerpts. However, the document does mention interest charges in the context of the De-identification Fee.
Specifically, if Auntie Annes terminates the Franchise Agreement and the franchisee fails to de-identify the shop, Auntie Annes may make the required changes on the franchisee's behalf. In such cases, the franchisee is responsible for covering Auntie Annes' actual costs, including interest and an administrative fee equal to 15% of their actual costs.
While the FDD excerpts do not specify the interest rate applied to general past due amounts, it is clear that interest can be charged in certain circumstances. A prospective franchisee should directly ask Auntie Annes about the specific interest rate and terms applicable to overdue payments to fully understand the potential financial implications.